Dash Force News talked with Peter Vesborg, founder of CrowdNode, about the service in more detail. He started off by describing the team’s motivation behind the company.
“We’ve long wanted to make a business for the Dash world. A masternode sharing service of the sort we’re making is what we wanted for ourselves so we figured that others would as well.”
CrowdNode claims that their main features are “small minimum deposit, streamlined signup, unmatched transparency, extreme focus on security, and simple fee model”. Their minimum deposit requirement is just 1 Dash. They “strive to be the most transparent crypto company out there” and do this by publishing as much information as possible such as the wallet addresses where the Dash will be stored. They place all their funds in either the online hot wallet (XjbaGWaGnvEtuQAUoBgDxJWe8ZNv45upG2), the cold storage staging wallet (XsScUw4quqy4KNjSrA52C3yrPab8SiNAVd), or the cold storage Masternode/collateral wallet(s) (CrowdNodeMN1: XfXKrYyyRZRhtqJJc2MF3WpHzeG81wrnxV). They are also “an incorporated entity in a well defined legal setting (Denmark)”, Peter told DFN.
They charge a 15% flat rate on rewards and all dividends are immediately deposited into users’ accounts by default to ensure compounding interest for clients. Their websites states that Masternode returns are currently around 6.9% and that users can withdraw funds “guaranteed within 7 days, but typically within a few hours.” On top of all this, they intend to implement numerous security protocols to minimize risks.
Minimizing risks and maximizing returns
Many cannot afford the 1000 Dash required to stake for a Masternode, which creates the demand for pooling services to still get access to the returns. However, so far, these services heavily rely on trusting third parties, which is why CrowdNode wants to enhance their security structure as much as possible so users feel safe while seeking larger returns. CrowdNode utilizes “best practices of the crypto industry (2FA login user login, cold storage beyond trivial amounts in the Hot wallet, etc.)”. They also ensure every user “locks their withdrawal address on signup and all withdrawals are manually approved – even from the Hot wallet”. They also “employ 3-of-4 Shamir Secret Sharing of keys so it takes at least three people to agree in order to move DASH out of cold storage”.
Additionally, they employ a “parachute eject” to ensure all members get their Dash back in case of an emergency.