Updated for new setup, lower deposit limits, and voting functions
One of the major masternode share providers, DashMasternode.io has a solid reputation in the community. It’s a flexible masternode shares service allowing those with fewer than 1,000 Dash to still retain recurring rewards for helping secure the network, and offers the best rates on returns in the business.
Ease of Setup
Setup is fairly straightforward, where you follow a link after an initial email request and are provided with an address to send the shares amount, which is PGP-signed and verifiable with Keybase. There is a thorough terms and conditions document for new users to read through as well. Contrasted with previous versions of the service which had a relatively confusing setup process including spreadsheets, this is a marked improvement.
A couple extra “moving parts” in the equation are the ability to specify a withdrawal address (instead of being fixed to the address sent from), as well as set up shares outside of neat increments (of 25 for example). These features are great to have and many users will be very happy to have them, however their presence adds an extra consideration for new users trying to figure out the whole process. Note that this is handled in a user-friendly manner on the DashMasternode.io side, and the challenge may come from the user forgetting which address or wallet they used etc. due to the still-experimental nature of cryptocurrency.
DashMasternode.io offers superior returns compared with other services. The customer retains 90% of the masternode returns on their portion of a masternode contributed, with a 10% service fee. This is highly competitive and a superior rate to other services which may charge more, such as 15%. Minimal deposit fees have been removed, instead limiting additional deposits to once per month. Payouts occur every two weeks, instead of regularly based on when the masternode the share belongs to pays out. The two-week interval is trivial for most, though some may find an advantage (or at least “cool factor”) of having a constant trickle of returns from multiple shares.
The service has always been thorough and helpful with communication, especially to new users, with quick response on most channels and easy reach. DashMasternode.io is also very consistent with availability rather than being run as a side-project with understandable limitations. Contrasted slightly with Moocowmoo, who also acts promptly though sometimes has a lot on his plate and turnaround isn’t always as instant, DashMasternode.io wins out narrowly in the support category.
The terms and conditions provided include a PGP-signed message allowing a user to verify on Keybase that the contact info is indeed associated with the service, as well as the deposit address, in order to minimize potential fraud or theft. User account functions such as password reset are all protected by requiring a user to sign a message using their original address.
For the paranoid, the service does not yet have an automated dead man’s switch, meaning there’s an element of trust in hoping user funds will be manually returned in the event of a crisis, however an automated solution is in the works. Additionally, there is no blockchain-verifiable method of determining that votes for budget proposals were accurately tallied, giving the possibility of neglected or misapplied votes. For the average user comfortable with the concept of a trusted business, however, these are not a major concern.
A couple special features make this service stand out. To begin with shares can be started with an initial deposit of 20 Dash, 5 lower than the industry standard, which makes starting marginally more accessible. Additionally, shares can be added in almost any amount once per month, meaning that a new investor putting their life savings into the program won’t have to potentially wait years before doubling their investment for the next step.
Finally, DashMasternode.io offers users the chance to vote on treasury proposals, something that smaller Dash holders can’t do due to the 1,000 Dash collateral requirement for operating a masternode. This provides a great interim step for those waiting for wide protocol-level voting rights.
Pros: The best return rates around, customization options and special features, relatively easy setup
Cons: Extra options may provide some risk of user error, some security features not yet automated.