Masternodes (bonded validator systems) are central hubs that maintain the network in exchange
for a reward. Each masternode plays a part in the process of block validation and ensuring
network stability. Thanks to masternodes, PrivateSend is possible for all Giant Coin holders —
this optional feature allows users to make their financial operations more confidential.
One of the main achievements of the Giant team has been making masternodes an important
element of the smart contracts ecosystem and self-governance mechanism.
In Giant, masternode technology is a way for investors to have a direct influence on the project’s
development. It also gives them the ability to deploy smart contracts in the mainnet and earn a
source of passive income.
In essence, this makes masternode owners essentially shareholders who have a vested interest
in ensuring the network’s stability, as well as motivating them to participate in budget allocation
decisions of Giant-based products and the Giant proposals fund.
The reward mechanism is fully transparent and, like in PoS, is calculated by an explicit provision
in the form of mathematical formula. This formula, however, is different than the one used in the
PoS rewards distribution.
The quantity of blocks in 24 hours is divided by the number of masternodes in the network and
then multiplied by 100%.
Let’s review this formula using the Giant blockchain as a reference. The block time of Giant is
120 seconds, which means the average block quantity per day is 720. With 900 active
masternodes in the network, your chances to receive a reward are 80% (720/900*100%=80%).
Obviously, chances grow even higher if you have several masternodes in your possession. They
can be efficiently managed on a single Ubuntu server if you have an IPv6 connection. Each
masternode costs 1000 GIC, and the subsequent rewards for network maintenance can equal
1000 or more GIC in just a few months.
Masternodes are the cornerstones of the Giant economy — their permanent long-term growth will
lay a solid foundation for the stability of the Giant blockchain. More maintenance hubs means
faster transactions for all the decentralized apps that will be built on Giant in the future.
MN = 1000