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Guide Ethical Voting in DAOs: The Role of Masternode Owners in PIVX Governance

LeacyMcK

Administrator
Staff member
Please find below the 1st of 3 articles from the Ethical Voting Series written by PIVX's amazing writer @clem.


"PIVX is a decentralized blockchain project that prioritizes financial privacy and security. It utilizes a unique combination of features, including proof-of-stake, masternodes, and zk-SNARKs, to enhance transaction speed, user anonymity, and transaction privacy.

Speaking of masternodes, PIVX operates a decentralized governance model that allows the community to shape the project’s future. As a decentralized open-source project, masternodes are one of the core pillars of the PIVX ecosystem. They bolster network security by validating blocks and transactions across a distributed network of nodes.

In this “Ethical Voting Series,” we will explore the role of masternode owners in PIVX governance.

What is a Masternode?
A masternode is a specialized type of node that performs added functions within a blockchain network. These extra functions vary from one blockchain to another but generally revolve around improved performance and security, as well as governance participation.

PIVX masternodes perform two broad functions — they secure the network by providing additional nodes to validate blocks and transactions and they facilitate decentralized governance by casting their votes on submitted proposals. The latter enables second-layer innovations.

In addition to the right to participate in on-chain governance, PIVX masternodes are incentivized for their contributions to the network. Under the current block reward structure, 4 PIV goes to stakers, masternode operators are rewarded with 6 PIV, and 10 PIV goes to the DAO Treasury for budget and development.

Here’s a quick checklist if you intend to directly host a PIVX masternode:

10,000 PIV collateral
24/7 server uptime
Dedicated IP
Governance in PIVX
PIVX stands out from many blockchain projects by placing decentralized governance at its core. Unlike systems where governance is an afterthought or primarily controlled by the core team, PIVX mandates that every penny allocated from the treasury must undergo a community-wide vote. This crucial step ensures that Masternode operators, as key stakeholders, have a direct say in how the treasury fund is utilized.

Each cycle, a substantial sum of 432,000 PIV is allocated to the treasury. Community members, including core developers, can submit proposals for funding. These proposals can encompass a wide range of initiatives, from critical protocol upgrades and innovative development projects to vital community outreach programs.


Masternode owners are entrusted with the weighty responsibility of evaluating each proposal meticulously. They must consider its potential impact on the entire PIVX ecosystem, ensuring that the treasury fund is utilized ethically and effectively to advance the long-term goals of the project.

For a proposal to pass, it must receive a net positive vote of at least 10%.

What’s Expected of You
Whether you like it or not, ethical voting in the PIVX ecosystem is paramount to the project’s long-term success. Masternode owners must carefully consider the implications of each proposal before casting their votes. It is crucial to prioritize the overall health and sustainability of the PIVX ecosystem, ensuring that all decisions are made in the best interests of the community as a whole.

I want to define ethical voting as putting the interest and sustainability of the project ahead of your personal interests. You have the right as a masternode holder to vote against a proposal if you believe it does not serve the community’s interests.

It is also important to engage in open discussions with other community members, and carefully analyze the potential risks and rewards associated with each proposal. By exercising your voting rights responsibly and ethically, you can contribute significantly to the growth and development of PIVX."

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