What is a masternode?
A masternode is a compute resource that meets the minimum technical and network requirements to run the Swarm core software and validate transactions. As the network grows over time, masternodes will also provide resources for other data services relevant to the network.
What are the requirements for running a Swarm Masternode?
In order to activate a node as a Swarm Masternode, the operator will be required to stake 50,000 SWM tokens. 15 days after the staking and activation, the Swarm Masternode will start participating in the rewards. Swarm Masternodes will be required to run the latest release software version in order to receive rewards.
What types of rewards are available?
How many Swarm Tokens do I need to be able to run a Swarm Masternode?
To run a masternode you don’t need Swarm tokens (SWM). But in order to be eligible to participate in the rewards you need to have 50,000 SWM tokens in a wallet which then gets referenced in the configurations of the Swarm masternode. Further restrictions may apply (see below).
Why do I have to stake 50,000 SWM to run a Masternode? Can I not just run a node and earn block rewards?
Staking is required to ensure that Masternode operators have “skin in the game” and are disincentivized to take their Masternodes offline at a whim. Staking also signals a serious investment in the infrastructure Swarm is building and a commitment to maintain the network. Running a regular node does not qualify for rewards as it is not adding to the robustness of the network.
How many wallets do I need to run X nodes?
You need one wallet per node stake. So one wallet should have the 50,000 SWM stake necessary per node. If you want to stake 5 nodes, register 5 different wallets, each with 50,000 SWM in them.
Where can I buy SWM tokens if I want to earn rewards from a Swarm Masternode?
What if I don’t have 50,000 SWM tokens?
In the near future, you will be able to participate in fractional ownership of a Swarm Masternode through a Swarm Investment Opportunity called Swarm Masternode Token (SMT). This opportunity is coming soon.
What will be the annual fees for the SMT?
This is still to be determined, but likely they will only be enough to cover the costs of running and maintaining the Masternode.
Am I allowed to run a Swarm Masternode as a US person?
Yes, anyone can run a masternode. More differentiated on the rewards for US persons though: Block rewards is available to any eligible masternode operator with no restrictions. Other reward components likely need qualification under US regulations.
Alright, I am interested! When can I start?