An Authority Masternode (AM) is a node on the VeChain blockchain that is responsible for validating transactions, producing blocks, and participating in governance. AMs are required to meet certain technical and operational requirements, and they are rewarded for their services with VeThor (VTHO), a cryptocurrency that is used to pay transaction fees on the VeChain blockchain.
Key Characteristics of Authority Masternodes
Authorized nodes: AMs are authorized nodes on the VeChain blockchain, meaning that they have been granted permission by the VeChain Foundation to participate in consensus and governance.
Validation and block production: AMs are responsible for validating transactions and producing blocks on the VeChain blockchain. This ensures that the blockchain is secure and that transactions are processed correctly.
Governance participation: AMs participate in the governance of the VeChain blockchain by voting on proposals to change the protocol. This helps to ensure that the blockchain remains decentralized and that the community has a say in its development.
Rewards: AMs are rewarded for their services with VTHO. This helps to incentivize participation and ensure that the network remains secure.
Requirements for becoming an Authority Masternode
Technical requirements: AMs must meet certain technical requirements, such as having a dedicated server with a fixed IP address and a high-speed internet connection.
Operational requirements: AMs must meet certain operational requirements, such as being operated by a team of experienced professionals and having a proven track record of reliability.
Collateral: AMs must put up collateral in the form of VET, the native cryptocurrency of the VeChain blockchain. This helps to ensure that AMs are committed to the network and that they will behave in a responsible manner.
Benefits of Becoming an Authority Masternode
Rewards: AMs are rewarded with VTHO for their services. This can be a significant source of income for AM operators.
Reputation: AMs are recognized as leaders in the VeChain ecosystem. This can help to attract new customers and partners.
Influence: AMs have a say in the governance of the VeChain blockchain. This can help to shape the future of the network.