Masternodes play an important role in the Wagerr ecosystem. They provide a robust network and ensure the system remains decentralized. Masternodes require 25,000 WGR as collateral, thus they also have a direct impact on the supply of WGR available on the market.
Masternodes earn WGR for the services they provide. This comes in a fixed component and a variable component.
Wagerr is a Proof Of Stake blockchain meaning that it provides 'staking' rewards for block formation. Blocks occur every 60 seconds and a total reward of ~3.8 WGR is minted.
25% is given to a standard staking wallet (~0.95 WGR)
75% is given to a masternode wallet (~2.85 WGR)
This equates to roughly 2 million WGR being minted per year. The number of masternodes will determine the amount of WGR each masternode receives. An estimate of the fixed rewards can be calculated with the below formula.
Masternode Holders earn a proportion of the betting volume that occurs on the Wagerr network. Masternodes share 2.4% of the net winning margin of all bets. This can be estimated by summing the below formula by all winning bets.
Simply, the more betting volume the more rewards.
The above reward structure creates a flywheel effect for masternode holders.
Wagerr development initially drives increased betting volume.
This leads to a greater masternode reward due to the increased betting volume.
In turn, a higher yield incentivises more masternodes to come online to take advantage of the higher yields.
This locks up WGR from the circulating supply and creates scarcity in the market, putting upward price pressure on WGR.
Upward price pressure benefits existing holders and the development fund which can then use the increased funds to further drive demand for betting volume through development