Swarm Fund is a distributed ledger network for private equity. There is a significant divide between the world of cryptocurrencies and everyday life. For most investors, cryptocurrency investments present a way to make some profit from buying and selling valuable assets (basically, buy low and sell high). Swarm Fund creates a unique platform and infrastructure for cryptocurrency investors to extend their portfolio into real assets.

Despite the novelty of this idea, it may come as a surprise that the blockchain project until recently was being powered by just four nodes. These nodes ensured that all the transactions on the platform's blockchain are validated. However, the platform has introduced masternodes to meet the need for scalability. Masternodes will spearhead a path towards increased decentralization for this trustless network.

According to Co-Founder and CEO of the project, Philipp Pieper:

A decentralized, trustless network has always been core to the design of the scalable and community-governed infrastructure for Swarm, and we’re excited for the community to now be able to join us as we build a core component that powers the next generation of capital markets.

About the Masternode

To achieve stability and attract investors, Swarm has a rather unique incentive model. Their model has been broken down into two aspects – “The Hare” and “The Tortoise”. A total of 20 million Swarm (SWM) tokens, which is equivalent to 20% of the total number of tokens have been set aside to incentivize the masternode network.

The Hare which supports block rewards has been put in place to fast-track the deployment of core infrastructures. 10 million SWM tokens will be set aside for block rewards. The annual reward for this category is 25% of the initial pool. This amount will reduce by 25% every year for the next 100 years.

The Tortoise is meant for market development fund rewards. In addition to the first 10 million SWM tokens set aside for block rewards, the Foundation has also proposed earmarking another 10 million SWM tokens to establish the Swarm Market Development Fund (MDF). The MDF will be a pool of capital under the management of masternodes through the Swarm’s Liquid Democracy Voting Module. 30% of the investment returns in this category will be paid to participating masternodes.

The Swarm masternode is available to anyone on the network. Participants are expected to stake 50,000 SWM tokens, which will become active after 15 days. The CPU requirements include a quad-core system with a minimum of 8GB DDR4 RAM and hard disk space of 128GB.

It is worth noting that participants can run more than one masternode. Also, individuals who may not have up to 50,000 SWM tokens to stake can participate in a fractional ownership model – Swarm Masternode Token (SMN). Participants will have the same right as other masternode owners.