Masternode

A masternode is a server that performs extra services for certain blockchains — such as faster settlement, privacy features or on-chain governance voting — in return for a share of block rewards. What distinguishes it from an ordinary full node is a collateral requirement: the operator must lock a fixed amount of the network's coin to qualify, which is meant to make misbehaviour expensive. Masternodes must stay online continuously, so operators typically rent hosting and manage keys carefully. Rewards are not guaranteed income: they depend on network issuance, the number of competing masternodes and the coin's own value, and the locked collateral is exposed to that project's risks. The model is far less common than modern proof-of-stake validators.