DECENOMY has launched a feature that will allow masternode owners to tweak collateral values based on real-time metrics, network requirements, and market demand. Known as “Dynamic Collateral,” the new revolutionary feature is poised to be a game-changer in the masternode space.
The new feature is currently a work in progress on the Decenomy Standard Wallet, a platform that facilitates cross-chain interoperability and governance among DECENOMY projects through the same wallet codebase and blockchain infrastructure.
Dynamic Collateral eliminates some of the bottlenecks associated with the prevalent fixed collateral value associated with leading blockchains like DASH and PIVX. For one, it opens the door of opportunities to masternode operators, allowing them to benefit from price fluctuations and arbitrage. It also encourages increased participation in masternodes by adjusting the collateral amount to an optimal level that balances risk and reward.
The idea behind Dynamic Collaterals is to adjust the collateral amount according to the market conditions and the network needs, ensuring a balance between supply and demand, security, and decentralization.
According to the documentation for the feature, the collateral value of a masternode coin within the ecosystem will be adjusted at every 100000 blocks based on three parameters – the current coin supply, a predefined target percentage of the supply locked in masternodes, and the number of masternodes in the network.
It is worth adding that the supposed change in collateral value will be limited by a “minimum percentage and a maximum percentage” to ensure stability.
DECENOMY is an umbrella for a decentralized economy seeking to enable new ways of conducting economic transactions with zero inflation, backing cryptocurrencies with real-world assets. The company owns and operates 18 blockchains that cut across different areas of the economy, including tourism and rental, mobility & electricity, and IT.
