Since DIP3 (introduced in Dash Core 0.13.0), masternodemasternode - A computer that provides second-tier Dash functionality (InstantSend, PrivateSend, decentralized governance). Masternodes are incentivized by receiving part of the block reward, but must hold 1000 Dash as collateral to prevent sybil attacks. reward payments are based on the deterministic masternode list information found on-chain in each blockblock - One or more transactions prefaced by a block header and protected by proof of work. Blocks are the data stored on the block chain.. This results in a transparent, deterministic process that operates using the algorithm described in DIP3.
On-chain masternode lists reduce the complexity of reward payments, make payments much more predictable, and also allow masternode payments to be enforced for all blocks (enforcement for superblocks was not possible in the previous system).
Updated almost 2 years ago