Masternodes can add functionality to a network besides being incentivised to provide infrastructure.
Functions provided are expected to increase beyond simple tasks such as anonymity or instant payments.
For example, BlockNet is experimenting with nodes to enable trustless exchange services, whilst Crown
utilises nodes to host decentralised applications. As their utility continues to increase, Masternodes
are set to become the underlying crypto infrastructure of the near future - providing an attractive and
ongoing source of income in the process.
As individual projects mature, and their associated
coins or tokens appreciate, the cost of acquiring sufficient stakes to secure Masternode ownership
increases commensurately. Whilst strong and mature projects offer higher liquidity and lower
volatility, the associated return on investment (ROI) from staking those types of assets tends to be
lower. Accordingly, INDX believes that exposure to very well-established projects such as DASH, PIVX
and LUX ought to be blended with mature projects such as KORE, Smart Cash and Bulwark, as well as
relatively newer and promising projects such as Arctic, Polis, Crown and Monoeci.
anticipates the Masternode landscape to develop aggressively in the future, with various fundamentally
strong projects influencing the space such as VeChain, Matrixchain, Dadi and Origin Trail, to name a
Please see the INDX Light Paper and Algorithm Overview for more information.