Passive Income in Crypto: How to Stake Dash with Cobo Wallet

In the revolutionary world of cryptocurrency, there are a number of new and innovative ways to generate passive income. In this article, we’ll explain the Dash model and how you can stake DASH with Cobo Wallet.
#cobo wallet • September 26, 2018

What is Dash?

Dash is a decentralized currency project based on a fork of the Bitcoin protocol. With a unique system of governance and transaction settlement, Dash offers lightning-fast private transactions with a minimal transaction fee. They are able to do this thanks to a unique system of user-run nodes, commonly known as “masternodes.”

How do masternodes work?

In the Dash system, masternodes help settle transactions, increase the anonymity of transactions, vote on Dash budget funding proposals, etc. The masternode system is referred to as Proof-of-Service because the masternodes provide crucial services to the network. Although Dash still relies on a Proof-of-Work block validation mechanism, the entire Dash network is overseen by the masternodes, which have the power to reject improperly formed blocks from miners. For instance, if a miner tried to take the entire block reward or run an old version of the Dash code, the masternode network would orphan that block, and it would not be added to the blockchain.

Put simply, hosting a masternode is akin to sharing your computer power to help maintain the Dash network. Because hosting a Dash masternode requires money as well as effort, Dash incentivizes you by paying you Dash rewards in return.

How much do masternodes make?

For their services, masternode operators receive 45% of the block reward, roughly equivalent to 2 DASH per week for each masternode (about 354 USD as of this publication date). Dash publishes an expected rate of return on their website as well.

Source

Source: http://dashmasternode.org/what-is-a-masternode/, August 2018

Can I host a Dash masternode?

Setting up a masternode is fairly straightforward. There are 3 main requirements to run a Dash masternode:

  1. Own a minimum of 1,000 DASH

-- Arguably the hardest part. Currently, 1,000 DASH is valued as high as 177,000 USD.

  1. Have a dedicated IP address

  2. Be able to run a masternode 24 hours a day with a connection loss of no more than 1 hour.

-- This one can be a problem for operators with an unstable Internet connection.

For more details, see: https://docs.dash.org/en/latest/masternodes/index.html

Can I still earn rewards from Dash if I don’t run my own masternode?

If you don’t have the necessary time, capital, or technical interest to operate your own masternode, you’re in luck. Cobo Wallet offers a custodial solution, allowing you to earn from just holding your Dash with Cobo Wallet.

Users start earning Dash rewards with Cobo Wallet with as little as 0.01 DASH, with masternode rewards paid out weekly. The rewards are proportional to how much you put in. The more you deposit, the higher your reward. Users may estimate how much DASH they can expect to earn with our calculator.

Airdrop Bonus: New users (non-China region) that register with Cobo Cloud Wallet from August 13th 1:00 am to August 29th 5:00 pm (GMT-7) and maintain a minimum balance of 0.05 DASH will be eligible for part of a 50,000 USD Dash airdrop on August 30th, 2018 at 5 pm (GMT-7).

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How does Cobo make money?

Cobo takes a small management fee from the masternode rewards. Holding your assets in Cobo Wallet will always be free.

How do I earn Dash rewards with Cobo Wallet?

If you haven’t downloaded Cobo Wallet, you can find us on all major app stores (e.g., Play Store, App Store or download directly from our website. Once you’ve downloaded and registered your Cloud Wallet account:

  1. Select ‘Cloud Wallet’ and go to ‘Assets’ page

  2. Tap on the plus sign icon at the top right to add coins

  3. Add DASH to your wallet. You will see a checkmark once it’s added

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  4. When you go back to ‘Assets’ page, the DASH wallet will show up

  5. Underneath, a purple box will show the annual return rate.

  6. Tap on the purple box or the ‘Reward Wallet” icon to access the DASH reward wallets.

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  1. Transfer your DASH to the reward wallet to start earning

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It goes without saying that, by joining our Rewards pool, users are entrusting us with their funds. As a leading crypto wallet, we aim to be worthy of that trust. Always feel free to reach out to our team if you have any questions or concerns.

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