Staking and masternodes are the cornerstones of the functioning of blockchains based on proof-of-stake. They are the two main vectors of passive income in the new finance of crypto-assets.

Staking / Masternodes, what is it?

The masternodes

A masternode is a server holding a complete copy of the blockchain and whose purpose is to provide functionalities to the protocol such as validation and securing transaction blocks.


Staking, or Proof-Of-Stake, is a process that help a blockchain network to create blocks and validate transactions.

What is Proof-Of-Stake ?

This complex mechanism maintains and secures the transaction protocol running through validators in the cloud called “masternodes”.

This consensus immobilizes a capital (or collateral) and *rewards with commissions the holder of the validator or the wallet with tokens of the said blockchain.

Participants thus generate new tokens passively with the rewards offered by blockchain networks for immobilizing their capital.

The collateral

The best synonym for collateral is most likely caution. This is the amount of crypto-assets you choose to immobilize. We could also talk about capital.


The APR, or Annual Percentage Rate, is the percentage of profitability of a masternode or a staking.

This number is expressed in % and it varies from one project to another. From this percentage will simply flow the total cumulative amount of rewards over 1 year, in the crypto-asset in which you have invested.

EX: If you buy collateral of 100,000 tokens today, at 25% APR, in 1 year, you will be leading 100,000 + (25% of 100,000) = 125,000 tokens.

The rewards

The rewards are different depending on the project and the method used (masternodes / stacking / lending / yield farming / …).

These vary from 4% to 50% and can evolve over time downwards or upwards in proportion to the use of said blockchain.

When the network of a crypto-asset uses a masternode, it rewards it. For example, if the reward/block is 1000 tokens and there are one hundred masternodes on the network, each masternode will earn 10 tokens. The mining speed of a block ranges from a few seconds to a few minutes.

How to choose between a masternode and staking ?