To guarantee the long term sustainability of the blockchain, the network would keep a portion of the block rewards in escrow and the masternode operators would be tasked to act as stewards and invest in the maintenance and expansion of the network. This will result in faster development and promotion, creating a virtuous cycle that benefits all actors, including miners, masternode operators, investors and users. More importantly, this gives the blockchain itself a self-preservation mechanism that is beyond the control of any individual.
Currently masternodes make 42.5%
|45%||Masternode Reward for Proof-of-service|
|10%||Decentralized Governance Budget|
Masternodes make 45% of the mining reward, this would cap at 45%, then future increases would instead be held in escrow by the network waiting to be executed in its maintenance and development miners also receive 45%. The remaining 10% is disbursed monthly by the masternode operators, creating the first self-sustainable decentralized cryptocurrency platform.
The masternode operators establish a social contract with the network they benefit from and are bound to act as caretakers, dedicating a portion of the network rewards to furthering the ecosystem. This has a ripple effect that benefits all parties involved especially the end users.
The value from the projects is expected to be much greater for everyone as this would benefit not only operators but also miners and users. This is not different from the miners contribution to the ecosystem. Because miners don’t keep 100% of the block reward, like it happens in other PoW cryptocurrencies, we have masternodes and a much healthier network that increases the value of the reward that miners perceive. Besides that, masternodes will be able to vote on the introduction of this change, making the first distributed decision the actual creation of the system, similar to establishing a Constitution.
This approach of distributing the normal block reward in a way that considers all critical elements a crypto-currency needs for its long term viability, e.g. mining, full nodes, development and promotion, is really revolutionary as it is done without changing the emission or creating any additional inflation for investors. The network just distributes the available resources in a way that is beneficial to everyone and it has already proven to be successful with the introduction of paid full node operations(masternodes).