Fractional Dash Masternodes allows anyone to participate in Dash governance and receive block rewards. Dividends are paid quarterly proportional to your investment.
Strategy / Model:
Dash Masternode Tokens (DMN) will be offered at an exchange rate of one DMN per Dash invested. A Dash Masternode will be deployed once the minimum of 1,000 Dash is allocated. DMN token holders will receive payouts quarterly in proportion to their holdings. Investors will be able to vote on Dash’s budget proposals through Swarm’s liquid democracy voting module.
One year after the initial deployment, we will hold a vote to decide on exiting. If the majority of votes determine to exit the investment, the Masternode will be disabled and investors will receive their initial Dash back. If no exit consensus is reached, the Masternode will run for another year.
The Swarm Foundation will setup the Masternode and perform the necessary updates in order to keep it running. The cost of running the Masternode will be deducted from the quarterly payouts.
Market:
Acquiring Dash masternodes have become very inaccessible to the average person. The initial investment to setup a masternode today is around 250k USD. This creates an enormous barrier to enter the market. With DMN anyone will be able to participate in Dash’s governance and own a share of a masternode.
Return Profile:
Dash masternodes currently have a ROI of approximately 7% per year. This is not taking into account the potential increase in valuation of the Dash token.
Investment Opportunity:
Dash Masternodes are computers that run a full node and are able to perform special functions in the Dash network such as instant transfer, private transactions, and to vote on budget funding proposals. Masternodes are required to have 1,000 Dash collateral, a dedicated IP address, and be able to run 24 hours a day without more than a 1 hour connection loss. Typically, around 5.80 Dash is paid to each masternode every month. These requirements make it extremely difficult for the average person to operate a Dash masternode on their own.
Purpose of Capital Raise:
Capital raised will be used to set up and maintain one or several DASH Masternodes; no expenses for operating team
Risks:
Dash can depreciate in value and investors won’t have access to their coins until the exit date. Masternodes require constant updates and maintenance. There is the risk that Masternodes could go offline for a certain period of time in which no block rewards would be collected.
