Simply put, a Masternode is a server connected with the network that performs certain tasks related with PrivateSend, which is what the anonymity feature is called, and gets paid for it. It is Proof of Service.
Anyone can run a Masternode. The objective is to have enough of them for decentralization so nobody controls an important fraction of Masternodes. On the other hand, to avoid bloating the network or having reckless operators, there is one condition that needs to be fulfilled: proof of ownership of 1000 DAS. The coins don’t need to be in the Masternode, but they need to be kept in a certain way. If the owner moves or spends those coins, the Masternode stops working.
Masternodes are get paid by the network for the services they provide for PrivateSend. 20% of the new block’s reward goes to pay the Masternodes.
Masternodes are selected from the MN list (for MasterNode) by deterministic order (the one that got it’s payment the most time ago and has been in the list enough time at the same time),
so in the long term all Masternodes will converge to a similar amount of rewards.
Having so many servers with the full block chain working for the coin can be extremely useful. Thanks to the reward system, there is no risk of not having enough master nodes and the developers can rely on them for any new decentralized feature they want to implement. This is huge. Tell any developer that he can count on a thousand distributed servers working 24×7 for him and he will tell you.
The more Masternodes the better and safer for the DAS Network.
Please support The Masternode Network ! Do not let your DAS just sit in the Wallet, put them to work !
There are many services and guides to help you setup your own Masternode. The payment returns speak for themselves – currently DAS masternodes earn 6-9 DAS each day.