A masternode is a powerful, dedicated, and secure server that requires a deposit of cryptocurrency (called collateral) to run. The collateral allows the masternode to become a trusted third-party within a blockchain network. And once the masternode is operational, the investor of the collateral receives masternode rewards.
Are Masternode Rewards Different To Staking Rewards?
In essence, masternode rewards and staking rewards are the same things.
They refer to the cryptocurrency that a network returns to the staker for carrying out a specific role on the blockchain. But the key difference lies in how the cryptocurrency staking systems work.
Anyone can earn staking rewards by depositing as little as 1 EUM into a staking wallet and clicking to start staking. In this case, the staker can earn up to 6.5% staking rewards per year on their balance. To earn masternode rewards, the staker must deposit 100,000 EUM into their staking wallet and agree to leave it there for 12 months.
Given that masternode staking requires a significantly bigger commitment, the network pays out significantly more rewards: masternode operators earn up to 25% masternode rewards per year.
Supersize your staking rewards: earn masternode rewards instead.
