DES Masternode

General information about masternodes

The masternode dashboard of the DES DAO is operated via the DES Explorer platform. Every authority applicant must register there; registration is voluntary for masternode investors – the capital contributors. DES Explorer is an information platform via which all relevant documents, reports and news concerning DES masternodes are communicated.

Applying as an authority

When applying to run a DES COIN masternode, each applicant must meet a set of criteria before the DES DAO will approve them as an authority that runs a DES COIN masternode. The application and decision-making process is conducted solely on a decentralised basis by the DES DAO community.

Technical preparation

To run a DES masternode, the applicant must have the required technical infrastructure or collaborate with masternode service providers (e.g. GetNode). After the technical installation or provisioning work has been completed, the applicant must create a masternode wallet (DES GT wallet) and a rewarding wallet (DES COIN). The applicant must pay the DES GT share of the investment (33% max.) into the DES masternode wallet. Once this has been done, the masternode is ready to use from a technical point of view.

Application profile

To publish the application in DES Explorer, a profile must be created which helps the capital contributors to make their investment decisions. The application includes a KYC process to verify the applicant's identity. The authority applicant sets out its reasons for wanting to run the masternode in a motivation letter. The particular focus here is on commitment to the project, the network and its potential. The applicant provides the wallet address for the planned masternode and the capital contributors' minimum denomination. Once all required data has been entered, the portfolio can be published as funding in DES Explorer. Capital contributors, as investors, can invest in the masternode if they want to support this authority through the portfolio.

Masternode investment

The capital contributors can reserve their investment project for a masternode that is open to funding using their DES GT wallet address in DES Explorer. The investor then has six hours to confirm the reservation by making a transaction; it is imperative here that the same DES GT wallet address is used. Once the transaction has been completed, the capital contributor's masternode investment stake will be allocated to the DES GT wallet address. The user can then set up the link to the DES COIN wallet address used for rewards using the masternode's DES GT wallet address and their DES GT wallet address. If the transaction is not completed within six hours, the reservation will be cancelled and reservation of the DES GT wallet address will then be locked for 24 hours in order to hinder systematic set-up blocking. It is possible to invest in the same DES masternode multiple times. Once the deposit limit has been reached, the funding ends. Every capital contributor (provided they are registered) will receive an investment report, containing the masternode's portfolio, and a personal investment balance for the DES masternode in question. If the capital contributor is not registered, they can export the data manually using the masternode wallet address and their wallet address. The capital contributor's DES GT wallet address is linked to their DES COIN wallet address for future reward payouts; payouts are made automatically.

Exit of a capital contributor

If a capital contributor no longer wants to participate in a DES masternode, they can withdraw by means of a share switch. In this process, the new capital contributor must completely replace the stake of the old capital contributor. Rewards will be paid out to the new address after the switch.

Dissolution of a DES COIN masternode

If an authority is not working to the capital contributors' satisfaction, a masternode can be dissolved through a vote; a 2/3 majority is required. The DES GT deposits are then returned to the payment wallet.

Decentralised philosophy

These decentralised processes allow the DES COIN masternodes to be determined and maintained by the members of the DES DAO – i.e. the DES GT holders. No centralised auditing agencies or organisations can influence the approval or termination of a DES masternode in the system. The members of the DES DAO freely decide whether an authority is to become a masternode or not based on the data published by the authority in the application process.