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Masternodes

What is a masternode?

A masternode is a special instance of the Syscoin wallet software that is installed on a dedicated server and performs services to the Syscoin platform network. In return for these services, masternodes receive Syscoin tokens as a reward, which come from the regular block reward. In a sense, masternodes can be seen as an alternative to proof-of-work mining.

Conventional cryptocurrency mining is considered inefficient due to the high initial capital required for hardware, high operational costs, and fast depreciation of assets; all of which make it unsustainable in the long term. Masternode cloud mining is a much-improved ecosystem with its distributed remote servers making much more efficient use of hardware and energy resources.

Masternodes also have higher ROI than mining, and aside from the base rewards, they gain an additional incentive of 3% bonus increase in rewards for every 4 months of continuous service.

(source masterminer.tech)

How do I get involved?

To host a masternode on the Syscoin 3.0 platform you will need 100000 SYS. Once you have your coins you are ready to decide whether to outsource the setup and management to a third party, or to do it yourself. Below you will find step-by-step guides and a video showing how you set up your masternode, as well as information on how to outsource to a third party such as masterminer.tech, who will set your node up for you and maintain it to ensure that there is no down-time.

Setting up your own Masternode

This is a setup guide for installing and managing a masternode on the Syscoin 3.0 platform. You will need a Virtual Private Server (VPS) from hosting providers such as Amazon EC2DigitalOcean DropletsGoogle Compute EngineMicrosoft AzureChoopaOVH, or Vultr that meets the following specifications:

  • Ubuntu 16.04 LTS x64
  • 1+ CPU
  • 2GB+ memory
  • 40GB+ SSD hard drive
  • Static IP Address – Elastic IP, etc

Network Configuration

You will need to allocate a static IP to your masternode. If your hosting provider implements a firewall you will need to allow access to your masternode on TCP port 8369. Since we will be using SSH to access to server you will need to allow TCP port 22 as well.

Upgrading from 2.x to 3.x?

If you are upgrading your wallet from Syscoin 2.x to Syscoin 3.x you MUST run dumpwallet "/full/path/to/dump.txt" and then importwallet "/full/path/to/dump.txt". You will likely want to delete "/full/path/to/dump.txt" after this process as it contains unprotected private keys.

If you are unable to open your wallet.dat with Syscoin 3.x with an error that your wallet is corrupted you will need to open the wallet using Syscoin 2.1.6 and call dumpwallet then open Syscoin 3.x to run importwallet.

Note that backing up and encrypting your wallet is out of scope for this guide but if they are new concepts to you please look into how to do them!

Prepare to Send 100000 SYS Collateral

To stake your masternode you will need to make a send transaction of exactly 100000 SYS to an address you own. You will need Syscoin-Qt (Win/Mac) to process this transaction.

To get started open Syscoin-Qt and from the menu select “>Settings > Options”. Select the “Wallet” tab and click the checkbox to “Enable coin control features” and “Show Masternodes Tab”. Click the “Ok” button to save your settings then wait for Syscoin-Qt to fully sync with the network.

Masternode Private Key & Address

Once Syscoin-Qt has fully synced select “Tools > Debug console” and enter 'masternode genkey' to generate your masternode private key. Copy this value as you will need it later, it will look similar to the following:

7ra1rhngvNkhkiFE8STrmvH3LvYTCzLyRFHFsZvrJUBV6ZmWnc

Next type 'getnewaddress' to generate an address to use for collateral. Copy down this address as well as you will need to send your collateral to it in the next step. Note that using an alias is outside the scope of this tutorial, but if you have an alias on the 3.0 platform you may use its address for the collateral transaction.

Multiple Masternodes?

If you are configuring multiple masternodes you will need to create a unique masternode private key and unique collateral address for each masternode using the steps above. Once the address is created for each masternode send a collateral transaction of exactly 100000 SYS to the address for each masternode using the next steps.

Note: If you use the same address for multiple masternodes your reward payouts cannot be completed.

Send Collateral to Address

Use Coin Control to ensure that you send your collateral from the correct address. Go to “Send” and then select “Inputs” to choose the input (address) that you would like to send from. In the example below using tSYS, the “Main” input will be selected. Click “Ok” to return to the “Send” screen.

Next, enter your masternode collateral address from the previous step into the Pay To field. Enter 100000 exactly into the Amount field and do NOT subtract fees from the amount as it will reduce your collateral total.

Press Send to transfer your Syscoin to your masternode collateral address. You will need to wait one block, approximately 1 minute, for the transaction to confirm.

Next you will need to get the transaction ID (TXID) for the collateral by selecting the Transactions tab. There you will see the 100000 SYS transaction; right-click it to view the transaction ID, and copy it down as well for later use.

Get Masternode Outputs

In Syscoin-Qt again open the “Tools > Debug” menu and enter masternode outputs. You will get a long string that is a hash of the transaction id from the previous step followed by a “0” or “1” to indicate the output index. The result should resemble the following:

{ “06e38868bb8f9958e34d5155437d009b72dff33fc87fd42e51c0f74fdb” : “0”, }

Configure Masternode via Syscoin-Qt

From the Syscoin-Qt menu select “Tools > Open Masternode Configuration File”. You will need to enter your masternode information using a text editor in the following format:

alias ip_address:port mn_private_key output_tx_id, output_tx_index

For example:

masternode_alias 123.123.123.123:8369 7ra1rhngvNkhkiFE8STrmvH3LvYTCzLyRFHFsZvrJUBV6ZmWnc 06e38868bb8f9958e34d5155437d009b72dff33fc87fd42e51c0f74fdb 0 

Save this file and close Syscoin-Qt.

Configure Masternode

Connect to your VPS via SSH and enter the following command to start the automated install:

bash <(curl -sL doublesharp.com/sys-masternode)

Default values are found in brackets and pressing enter will selected the [default] value. For entries with a [Y/n] the capital letter is the default. Enter [Y] to choose “yes” or [N] to choose “no”. Likely the only value you will need to enter is your masternode private key.

Syscoin Core Github Branch [master]:
Masternode Private Key []: 7ra1rhngvNkhkiFE8STrmvH3LvYTCzLyRFHFsZvrJUBV6ZmWnc
External IP Address [123.123.123.123]:
Masternode Port [8369]:

Press any key to continue or Ctrl+C to exit...

Once the build process and configuration have completed type source ~/.bashrc to access the syscoind and syscoin-cli executables via the new syscoin user.

Enable Masternode

Restart Syscoin-Qt and wait for it to sync up to the network. Choose the “Masternodes” tab, select your masternode, then click “Start”.

Eligibility for Rewards

Keep in mind that your masternode will not immediately be eligible for rewards. The eligibility period is determined by the formula [number of masternodes] * 2.6 * 60 seconds.

Note: if you restart your masternode by pressing “Start” in Qt this counter will reset and you will not receive rewards until your masternode is eligible again.

Masternode Server Commands

Now that syscoind is running under the syscoin user you will need to access it differently. The cron job for sentinel ping is also installed unter this user. The following commands may be useful.

 # view your syscoin.conf sudo cat /home/syscoin/.syscoincore/syscoin.conf
 # view your sentinel.conf sudo cat /home/syscoin/sentinel/sentinel.conf
 # view the syscoin user crontab sudo crontab -u syscoin -l
 # view the sentinel-ping cron log sudo less /home/syscoin/sentinel/sentinel-cron.log
 # start and stop the syscoind systemd service sudo service syscoind stop sudo service syscoind start sudo service syscoind restart
 # check that the syscoind process is running at the proper user ps aux | grep [s]yscoind
 # log out and back in or run the following to alias syscoind and syscoin-cli source ~/.bashrc
 # now the commands run as the syscoin user syscoin-cli getinfo syscoin-cli mnsync status syscoin-cli masternode status
 # it is aliased to this shorter function  syscli getinfo syscli mnsync status syscli masternode status
 # if you really want to log in as the syscoin user sudo su - syscoin

Summary

This script installs the necessary dependencies to build the Syscoin Core from source. It creates a user named “syscoin” and uses a systemd service to start the syscoind process as the “syscoin” user, and it set to start on boot after the necessary networking services have started.

Updates can be run by entering the same command again bash <(curl -sL doublesharp.com/sys-masternode)

Third Party Providers

Additional services for Masternodes

Below you can find a couple of useful links to services that help you monitor your Masternodes or can in general be interesting to learn more about masternodes.

masternodeonline.com - Monitor your MasterNode, receive email and Telegram alerts for status changes and payments.

Sysnode.info - Calculate your masternode returns

masterminer.tech - Third party hosting provider

masternodes.online - MNO is a masternode coin monitoring and stats service 

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