DECENOMY has introduced an innovative feature that empowers masternode owners to fine-tune collateral values in response to real-time metrics, network demands, and market dynamics. Launched in May 2023, “Dynamic Collateral” is a groundbreaking addition set to revolutionize the masternode landscape.
Thank you for reading this post, don't forget to subscribe!Currently in development within the Decenomy Standard Wallet, a platform that fosters cross-chain compatibility and governance across various DECENOMY projects using the same wallet codebase and blockchain infrastructure, Dynamic Collateral addresses some of the limitations tied to fixed collateral values observed in prominent blockchains like DASH and PIVX. Notably, it opens up new avenues for masternode operators, enabling them to capitalize on price fluctuations and arbitrage opportunities. Moreover, it promotes increased participation in masternodes by adjusting collateral amounts to an optimal level, striking a balance between risk and reward.
The core concept behind Dynamic Collaterals revolves around adapting collateral amounts in alignment with market conditions and network requirements, ensuring a harmonious equilibrium between supply and demand, security, and decentralization.
As per the feature’s documentation, the collateral value of a masternode coin within the ecosystem will undergo adjustments every 100,000 blocks based on three key parameters: the prevailing coin supply, a predefined target percentage of the supply locked within masternodes, and the total number of masternodes within the network.
It’s noteworthy that any proposed alterations to collateral values will be constrained by predefined “minimum and maximum percentage” thresholds to maintain system stability.
DECENOMY serves as an overarching entity for a decentralized economy aimed at facilitating novel approaches to economic transactions, all while maintaining zero inflation and underpinning cryptocurrencies with tangible assets. The company boasts ownership and operation of 18 distinct blockchains spanning diverse sectors of the economy, including tourism and rental, mobility & electricity, and information technology.
