PIVX Whitepaper

Abstract

The majority of crypto currencies that make use of masternodes,
split their block reward per block equally between the mining
and masternode distribution mechanisms. The intended fairness
of this reward distribution can be subverted by the growth of
masternodes held by large investors without limits leading to
potential centralization of the budgeting system much like having
a majority shareholder in a company. The additional benefits of
masternodes can lead to less number of users conducting Proof of
Stake (PoS) mining activities and thus lowering the security of the
PoS network.

Masternodes do provide a valuable service and should be
rewarded for that service, but our aim here is not to reward them
way beyond the extra value they provide. For we believe that doing
so disproportionately benefits masternode owners above and
beyond other users of the system and ultimately leads to a greater
degree of centralization.

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PIVX Whitepaper

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