$PAC Proposed Masternode Network & Collateral Change

$PAC Proposed Masternode Network & Collateral Change

Summary

This proposal focuses on a masternode collateral change from 500K/masternode to 2 million/masternode or 1 million based on masternode governance.  Our network size is showing signs of being oversized and wasteful. We need to right-size the network. This proposal’s goal is to allow the network to vote on either supporting this change to 2.0 million $PAC via a vote of “YES”, A “NO” vote means keep it the same 500K an abstain vote supports a change of 1 million.  We will then use the governance consensus result to determine what the new collateral will be. There is no “reward” associated with this proposal of size. It will be donated to the charity team.

VIEW PROPOSAL

Important (How your votes will be counted!)

Voting “Yes” = 2 million / masternode

Voting “No” = Keep it at 500K / masternode (current)

Voting “Abstain” = 1 million / masternode

Problem

Currently the $PAC network is approximately 8,000 masternodes and growing, our network is huge.  Currently number 3 in the masternode space. There are three major problems we have identified as a result of this:

  • The new .14 codebase that is being backported will require all masternodes to be re-collateralized.  That means new ID’s for all masternodes on the network. We would prefer to do this once and stabilize the network as quickly as possible.
  • Currently, no major network use case exists.  Today are just a transaction network. (one is coming but it cannot be funded today – current prices don’t support this vision).
  • Our original network’s perceived capacity was calculated in error.  Our true capacity is limited to our current block size limitation. In other words, we have a way oversized network – a good analogy would be a Ferrari (our network) with a one-cylinder engine (our limiting block size).
    • Costs to run our network exceed ~$40,000/month based on average hosting cost.  Which exceeds our current operations budget almost two to one. This is extremely wasteful and an inefficient and irresponsible use of real financial resources.
  • $PAC as a project, is just a baby in terms of our design which when projected over 100 billion coins makes our network in comparison to the rest of the other masternode networks way too large in relation to our maturity as a project.  Moving masternode collateral to 2.0 million would allow the network to “right-size” itself with the final design and progress of our use case design & funding requirements.
  • There are measurable inefficiencies in having a network that is too large.  One of our community members -Unick, wrote an extensive analysis on some of these here: https://iamunick.com/pac-masternode-collateral-change/

Background History

Originally, when $PAC was designed, the masternode requirements pointed to 2 million as the correct amount for the network.  The decision was made for it to change to 500K, driven by price, and the focus was to ensure that masternodes could be affordable at that time.  We didn’t have a valid shared masternode system like PACnode when design was launched. We were aware of this issue and decided we could change the collateral at a later date if it became problematic.

The Charts below help illustrate projected network size and total associated network costs.

Conclusion

The above information is presented to the masternode community for voting on which option makes the most sense for our project.  Please vote accordingly.

  • Yes = 2.0 million     
  • Vote No = 500K – Keep it the same
  • Abstain = 1 million

Join our Discord chat room if you would like to discover this topic more:   https://discord.gg/gwngGG

Thanks!

-The $PAC team

This Post Has 4 Comments

  1. Quero configurar um Masternode, mas antes preciso saber se eu poderia vender minhas moedas quando assim o desejar?

    1. Yes, You can remove the entry from your masternode.config file and then you can send the coins where you want to sell them.

      1. Desculpe a minha ignorância, mas como eu removo a entrada do arquivo masternode? Existe um tutorial? Poderia explicar como fazê-lo por este mesmo canal ou pelo meu email cadastrado? Eu já tenho as moedas, mas antes de configurar, quero retirar as dúvidas. Não utilizei o discordia porque não conseguir me comunicar por lá,mesmo estando logado. Obrigado.

        1. When you set up a masternode you need to enter a line in the masternode.config file.
          To open that file go to your PACcoin Core wallet > Tools > Open masternode configuration file.
          When you want to take down your masternode, just delete the line you put in there and also destroy the VPS that the masternode is running on.

          Here you can find how to set up a masternode: https://masternodes.paccoin.net/

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