6.2.0. Passive Incomes from Masternodes
Setting up a masternode requires you to have a certain number of coins that you will lock up in the blockchain. These coins to be locked up are known as collateral. But is collateral needed?
The most important reason for this is that by staking coins as collateral into the blockchain, the masternode owner is helping to stabilise the blockchain and ensures speedy transactions. For such contribution, the blockchain rewards the masternode owner handsomely by minting new coins for to him.
Collateral involves a large number of cryptos, hence, it is usually expensive for a newbie who does not have much capital to start with. As such, some people pooled their resources together to set up a masternode and then decide how they will share the accrued profits.
Table 5 shows how much return of investment you can get from investment in masternodes.
