SCI001 – Remove Shared Nodes

Improvement to be Implemented

Remove shared nodes and merge PoS and Masternodes into a combined pool that rewards users proportionally to their holdings.

Description

Since the beginning of StakeCube.net, we decided to offer shared masternodes in order to provide small investors with the possibility to participate in masternodes that required large collateral investments. In order to do this we created a system whereby users could join specific masternodes by reserving shares in them. Rewards generated would then be distributed proportionally to the participation share of a user in the masternode that generated them.

Disadvantages

Because of economic restrictions, only a limited number of masternodes can be hosted. Unfortunately this limits the number of users that can participate in them, causing frustration and leading some users to leave StakeCube entirely. Usability for new users is affected as well, since users have to wait long until a slot is opened.

Another important disadvantage is entirely technical. First the masternode has to be filled, and only then can it be installed and started by the StakeCube tech team. This makes it impossible to implement automation, which causes delays to obtain masternode rewards and is time-consuming for our team. Moreover, if a masternode needs to undergo maintenance, users participating in that specific masternode will not receive rewards for some time.

Advantages

This SCI aims to remove shared masternodes and make collecting masternodes and waiting for free shares a thing of the past.

The new method looks like this:

PoS and Masternode rewards are pooled together. The user will not have to worry about allocating his coins to shares in specific masternodes. Masternodes are installed automatically in the background as soon as previously defined parameters are met, e.g. enough coins in the pool. This new logic ensures that masternodes generate the maximum possible profit, as there are no delays.

The combined rewards from masternodes and staking are then distributed to all users proportionally to their holdings. Should one or more masternodes go offline because of updates or technical issues, the losses are spread evenly and thus more balanced and less noticeable. Usability for new users is greatly increased, as no manual steps are necessary to obtain better rewards. Hosted masternodes, their count and public addresses will still be displayed completely transparently and will be traceable by anyone on the front-end.

Users will have only two balance breakdowns: available and in open orders. “Locked in masternodes” is no longer necessary which improves flexibility when trading or withdrawing coins. The already running shared masternodes at the time of implementation will not be destroyed but simply “converted” to be used with the new reward structure.

If someone wants to host a specific masternode, they have the possibility to use our NodeCube app.

Requirements

Parameters and thresholds must be defined such as: profitability, scope to cover withdrawals, server capacity or break-even on PoS against Masternodes.

Related

SIC002

Release date

TBD

 

Please note we reserve the right to modify.