Setup An Alt Coin Masternode for Passive Income

These posts started off with the set-up of a staker node. Yes, since staking requires that the wallet is kept open 24x7 to be able to earn. This is why a VPS comes in handy.

Requirements

To be able to earn more, the rewards offerred by building a masternode is the way to go. However, it requires that you stake more. Coins put on stake for masternode could not be withdrawn. Otherwise the rewards will not be enjoyed. In the case of NYEX (at the time of writing this blog post), the requirement to create a masternode is 10,000 NYEX coins. Some other coins require less, while others more.

Github Repository

Most, if not all, of the configuration files and scripts required are in my github repository.

Difficulty

Intermediate to advanced. If you have questions, feel free to ask them in the comments section.

What Will I Learn?

You will learn how to setup a Nyerium staker instance and a Nyerium masternode for maximum passive income.

Re-configure The Staker Instance

If you're putting the masternode instance together with the staker instance, it is possible. First, change the ports where the staker NYEX instance is listening on. Find the file $HOME/.nyerium/nyerium.conf and put these lines in (if they exist, change the values):
rpcport=67419
port=67418

The rpcport defaults to 57419. Likewise, port 57418. I just changed the first number so that it is easier to note that the daemon running on these ports is a staker instance. To effect the change, execute a restart of the wallet.
$ sudo systemctl restart nyex-staker

Pre-requisites

NYEX masternode requires that you own at least 10,000 NYEX coins. The rationale behind that is you need to send to your local wallet exactly 10,000 NYEX coins. You need to factor in the transaction fees (e.g. if sending from stocks.exchange send 10,000.002 NYEX coins).

If the masternode instance is not in the same VPS node as the staker instance, you need to install some additional packages. You may choose to check the set-up of the staker node or run the setup.sh script in my github repository.
$ bash setup.sh

Deposit Exactly 10,000 NYEX

Next, you need to deposit exactly 10,000 NYEX coins. Yes, you read it right -- exactly 10,000 NYEX coins.

Generate a NYEX wallet address for your masternode. MN1 (enclosed in quotes below) can be any alias you want to call your masternode. Remember that this will be used later, so make it as meaningful as possible. In my case, I use MN1.
$ nyerium-cli getaddress "MN1"
NYYJc31kdp9BVdjGuWRZv91b4SYG1pTVWu

If sending from the local wallet that is already holding more than 10,000 NYEX, use this command to send NYEX coins. Where NYYJc31kdp9BVdjGuWRZv91b4SYG1pTVWu is the output of the command above.
$ nyerium-cli sendtoaddress "NYYJc31kdp9BVdjGuWRZv91b4SYG1pTVWu" 10000

You will then get a notification that the wallet received a "to yourself" type deposit.

Obtain Masternode TXID

After the deposit, the masternode transaction id information can be obtained. The output is a transaction hash and a trailing number having a value of either 0 or 1. Take note of these information. Let's call them TRXHASH and VOUT respectively.

$ nyerium-cli masternode outputs
{
    "1f1f40accaa1a0a48a427a33d4c0f42325ca4020c80e5336f15095d51c97d8bf" : "1"
}

 

Generate a Masternode Private Key

Next, generate a masternode private key. Take note of the output as well. This is required for later. Let's call this PRIVATEKEY.
$ nyerium-cli genkey

Configure the Masternode

Create the username that will run the masternode daemon. In my case, I use nyexmn as the user that runs the masternode daemon.
$ sudo useradd nyexmn -m

Create the masternode configuration

Next, create the masternode configuration file ~nyexmn/.nyerium/nyerium.conf.
rpcuser=nyexrpc
rpcpassword=somelongmd5hashthatcontainstherpcpassword
rpcallowip=127.0.0.1
server=1
masternode=1
masternodeaddr=#VPSIPADDR#:57418
masternodeprivkey=#PRIVATEKEY#

Replace VPSIPADDR with the IP address of the VPS, and likewise replace PRIVATEKEY with the output of the nyerium-cli genkey that was previously executed. The hashes are there to highlight the variables. Remove them.

Masternode systemd service

Download the file nyex-masternode.service from my github repository. Place this file in the folder /etc/systemd/system.
$ sudo cp nyex-masternode.service /etc/systemd/system
$ sudo systemctl daemon-reload
$ sudo systemctl enable nyex-masternode
$ sudo systemctl start nyex-masternode

Check and ensure that the system is running (initially, you will have to wait for the wallet to completely sync the blockchain history).

$ nyerium-cli masternode status
{
    (some output snipped)
    "status" : 4,
    "message" : "Not capable masternode: Hot node, waiting for remote activation."
}

Once you see a "message" similar to the above, your masternode is now ready.

Configure The Staker Node

The staker node can now activate the masternode. But it needs to be configured first.

Masternode Configuration

The masternode configuration file ~nyex/.nyerium/masternode.conf needs to be modified. Add the following lines.
MN1 #VPSIPADDR#:57418 #PRIVATEKEY# #TXHASH# #VOUT#

MN1 in the above is the alias used to generate the NYEX wallet. The rest of the items enclosed in hashes are already defined before.

Restart the staker service

Restart the staker service for it to be able to re-read the masternode.conf configuration file.
$ sudo systemctl restart nyex-staker

Next, activate the masternode. Again the MN1 alias is used here.
$ nyerium-cli masternode start-alias MN1

Check and ensure that the masternode is running.

$ nyerium-cli masternode list-conf
{
    "masternode" : {
        "alias" : "MN1",
        (some output snipped)
        "status" : "ENABLED"
    }
}

 
Once you see the "status" is ENABLED, the masternode is now working. You will start receiving masternode rewards in about 10-12 hours. Some have reported to receive in 24 hours. The patience game commences.

You will be able to check the masternode status on the Masternodes page of Nyerium. In the example below, the masternode was running for about 17 hours prior to being rewarded.

You will now start to earn in two-fold -- both PoS reward and masternode reward. Just to update you, NYEX has passed the 20,000 blocks and the reward sytem has changed. Masternode reward is 80 NYEX, and PoS reward is 20 NYEX (less txn fees).

Curriculum

The following tutorials could help out, in case you missed them.

• Staking Alt Coins for Passive Income
• AutoStart Staker Daemon on Boot

 

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