$1918.77/month No Lock Up of Investment | FLUX | PASSIVE INCOME STRATEGY — Masternoding #1
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Flux has been on my radar for quite some time now, however I was not prepared to write about them until their recent announcement on collateral halving on 2022.
For the newcomers to my series on Passive Income Node Strategies, otherwise please skip the Introduction to Nodes.
What are Nodes?
A blockchain is a digital ledger of transactions that is duplicated and distributed across a network of computer systems.
Most blockchains support one or more cryptocurrencies.
A cryptocurrency or crypto token is a digital currency that has no regulating authority and instead uses a decentralized system to record transactions.
It relies on cryptography to prevent fraud and counterfeiting.
To support cryptocurrencies and other transactions, blockchains need miners and nodes. A miner writes transactions to the blockchain and is rewarded for doing so. A node keeps a full copy of blockchain transactions yet is not rewarded. The more nodes running on a blockchain the more resilient it is against catastrophe and corrupt actors.
While all nodes are beneficial, full nodes with a copy of the blockchain
with 24/7 uptime provide the most value. However while full nodes are critical to the infrastructure of a well-performing blockchain, they are hard to create and expensive to operate.
Introduction to Flux
Flux is a fair-mined, proof-of-work cryptocurrency, launched in 31st Jan 2018, that acts as a utility asset for onboarding to the Ecosystem and powering the transaction of information across the Ecosystem. The asset also acts as the main incentivization for operating a FluxNode: Enterprise-grade server hardware powering the system.
Flux can be obtained by GPU mining, trading on exchanges and as rewards for operating nodes. It is a community-based project with a foundation that represents the community’s voice and protects the community’s wishes for the project.
The Flux ecosystem consists of: Fluxnodes’ decentralized infrastructure, FluxOS cloud operating system, Zelcore self-custody multi-asset wallet and blockchain app suite, and finally the Flux blockchain for on-chain governance, economics, and parallel assets to provide interoperability with other blockchains and DeFi access.
FluxNodes are available to anyone meeting the hardware requirements as well as having enough Flux as collateral, making the network actually decentralized both in the users running the node as well as the geographical location of nodes. The Flux collateral refers to the amount of Flux, users must have in order to stake it in the nodes they run.
Price of $Flux
At the time of publishing, 1 $FLUX is $1.4439
Flux Node Structure
There are three tiers of FluxNodes with different levels of required collateral and hardware specifications as observed below:
Back then before they announced the halving, the minimum amount of flux necessary to run a node was 10,000 Flux which is approximately $14439, posing a major barrier to entry to the common folk who weren’t too familiar with the concepts behind cryptocurrency, with a necessary amount of confidence to invest so much into something relatively unknown.
After the collateral halving in 2022, the requirements will be lowered to:
And they plan to introduce two low collateral nodes:
Current Reward Statistics
- Cumulus earns approx $200.50/month
- Nimbus earns approx $492.84/month (with additional Kadena Rewards)
- Stratus earns approx $1918.77/month (with additional Kadena Rewards)
Kadena is another cryptocurrency that has partnered with flux, which is also listed on exchanges, so you can sell the Kadena rewards for additional income.
The VPS cost is for users who fail to meet the hardware requirements to do self-hosting, and would pay an external party to use their hardware, for the hosting of a FluxNode.
There’s no use for me to do a copy and paste summary of other’s work especially when they’ve already done such a good job teaching newcomers how to get started.
You can refer to this extremely in-depth article on how to setup a FluxNode.
The Flux Team is fully doxxed with their public identities that you may check out here on their site.