Not Another Masternode (How Sinovate Breaks the Mold)

For a period of time, masternode coins were the hot new thing, providing high returns, high risk, and appeared with high frequency. Even today, they remain popular and are utilized by some prominent projects, with Dash being the frontrunner for all Masternode currencies. However, all masternode projects share some key issues inherent to the concept, namely high inflation caused by a constantly rising supply. This eventually-inevitably-leads to the diminished value of the currency, sometimes rapidly accelerated investors who buy large quantities of the coin to mine, then dump for quick returns.

Many projects have attempted to combat this serious issue, all finding their own ways with varying degrees of success. Sinovate is among them, but with a system that seems to tackle the core issue with masternodes in general. Sinovate brings its new ‘Infinity Node’ system, one in which coins allocated to become infinity nodes are burnt immediately. This entitles the burner to a guaranteed APR, the minimum being approximately 22%, if the maximum amount of coins allowed to be placed in Infinity Nodes is reached. At this point, it is important to realize that Sinovate as a project has much more to offer than just Infinity Nodes, with things like document verification and encrypted data transfers through the Sinovate blockchain. However, the scope of this article will extend only to the Infinity Nodes for the sake of brevity. More information regarding Sinovate can be found on ​https://sinovate.io/​, the official site.

Sinovate is powered by the all-new X-25X algorithm, with the nodes functioning off of a Proof of Burn system, requiring node collateral to be burnt in order to be validated. This results in the circulating supply shrinking, lowering sell pressure, and increasing the value of SIN. The

nodes themselves have an operational lifespan of 12 months and are tiered, with 100K guaranteeing a 12% APR, 500k getting a 17% APR with 5% bonus earnings, and 1M securing a 22% APR with 10% bonus earnings. All these interest figures are if the maximum amount of nodes are active, with actual rates potentially higher. 10K collateral is required to operate all nodes. All of these nodes still continue to function, securing and validating the Sinovate blockchain despite the coins being removed from the circulating supply.

So how does this solve anything? Simple, since all the required currency is being permanently removed from circulation, this keeps actual circulating supply limited, thus increasing value and scarcity of the coin. With the total supply at 645M SIN, if the maximum amount of nodes are run, that results in a circulating supply of only 31M SIN. For an investor to make the most of SIN, coins must be burnt, deflating the currency, subsequently aising the value. This system is a positive feedback loop wherein by receiving rewards, you are inherently raising the value of SIN. It is by tying the means of block rewards to a deflationary measure that sets Sinovate apart, setting the foundation to a stable currency.

This method is simple, since in a traditional system, nodes are both active and garnering rewards, inflation is rampant. Burning the node collateral attacks this head on. Investors still will receive rewards based on locked currency, but now instead of receiving more of a devalued token, rewards are guaranteed value, tied directly to the means of receiving them. Its forward-thinking measures like this that set Sinovate apart from standard masternode currencies.

Additionally, Sinovate is looking to leverage blockchain technology into real use cases through document verification, transfer, storage, and more. Sinovate is proof that masternodes arn’t dead, simply evolving.