Dominant Chain is a new project in the world of blockchain technologies, which is aimed to improve and significantly expand the capabilities of the virtual entertainment world, as well as to complement the list of successful cryptocurrency based on PoS. In our announcement, we talked about many advantages of our platform and now we want to pay a little attention to the masternode system and to the DMTC coin.
It is widely known that the current state of the Altcoin market, based on PoS, and the level of trust in them have fallen: coins lose value, projects fail, and new enthusiasts find it harder to convince people to invest in their ICO. This was influenced by a lot of factors, ranging from a large number of scams during 2017-2018, and ending with an unscrupulous community, who in the first case sells most of the coins immediately after currency come out on the exchange. If a scam project is very difficult to expose, the last factor of failure can still be eliminated if you properly think out the strategy of the first steps and correctly calculate the emission of the coin.
The Dominant Chain team spent a lot of time to solve these problems by setting the goal to make a unique offer that could interest investors of different levels and to avoid the significant reducing of the initial DMTC rate after the start of trading on the exchanges. After careful analysis, we managed to create a solution for both tasks at the same time.
There levels of the masternode
As we said, our first task was to create a familiar, but at the same time, the unique system of getting rewards for investments in the Dominant Chain project. In order to attract more active members of the crypto community, we decided to implement a system of three masternodes:
Each of these levels is activated by masternode using a different number of coins in the account and, accordingly, brings a different amount of reward. Of course, the Gold level will be the most profitable – it will bring its owner 63.84% reward for the block and such masternodes will not be too many that will be able to keep the ROI at a decent level for a long time. The award for the Silver level will be significantly lower and will be 25.53%, and Bronze will bring 10.63% reward. This system will give to an investor a choice that he/she can make, relying on the amount of his/her budget, and in the future, any user of the masternode, will be able to increase its level by collecting the necessary number of DMTC coins.
Maximum reduction of risk in price manipulation
Many PoS-projects hardly lose their initial strength after the ending of the ICO and listing on the first crypto exchanges. This is due to the fact that there are very few active masternode in the network and investors immediately receive a large reward for the blocks. When ICO is finished, their first holders accumulate a large number of coins, which are sold at the first opportunity, which is one of the main factors behind the fall in the rate of coins at the beginning of their way.
In order to eliminate such risks in the Dominant Chain project, our team decided to turn off the possibility of getting the full reward for all the masternodes for 2 months before the end of the ІСО. This will not only protect the coin from price manipulation but will also allow all investors to have equal opportunities for getting the commission. Such system will also help to eliminate the DMTC coin speculation in the black crypto market and the formation of crypto whales in the first months of the project’s existence.
The icing on the cake: growth of awards
“Buy earlier – get more” – one of the favorite calls that new PoS-projects use for their investors. This phrase implies that the first crypto players who bought the masternode get a good profit because of the low competition in obtaining rewards for the block. However, as soon as the number of masternode owners increases, the reward itself also falls, which ultimately leads to a very long ROI. We decided to go the other way and stay profitable for a longer time.
As you can see from the table of awards, in the first years the reward for the generated block, on the contrary, will grow from 26.5 to 60 DMTC. This was done with the aim of maintaining a high rate of ROI and so that even with a rapid increase in the number of masternode holders, our investors would benefit and not cease to feel the real value of the project. Over time, this reward will still begin to decline, but this will happen only when a sufficient number of coins are reproduced, which will be fully enough for active use by players, traders and cryptoinvestors.
Our goal is to create equal conditions for everyone, the players on the platform and investors, so that each member of our community receives tangible benefits and implements its goals with Dominant Chain.