Behind HECO Node Election - The Business Model of Becoming a Master Node

Blockchain nodes play an indispensable role in the process of industry maturity, which is both a manifestation of the distributed nature of the blockchain and the basis of the network consensus.

LONDON, May 21, 2021 /PRNewswire/ -- On May 7th, HECO announced its node election, aiming to enhance the stability and decentralization of the HECO system, while allowing more users of the HECO community to participate in the development of the HECO ecosystem, giving positive incentives to the community, thus promoting the prosperity and sustainability of the entire HECO ecosystem.

Led by Leo Su, the head of HECO, the platform is open to having 21 major nodes and 11 backup nodes elected by the community. Major nodes are eligible to make operational decisions for platform management. Both major nodes and backup nodes will be rewarded with on-chain transaction fees. 50% of the HECO transaction fee is distributed equally to each master node,40% is distributed according to the amount of HT staked by all 21 master nodes, and 10% is distributed to all alternative nodes corresponding to the staked HT amount.

The current monthly fee for HECO has recorded 118,400 HT, citing data from KingData. Each master node is eligible to receive an average of 3,701 HT – an annualized return of 888.25%, a far better return than most LP mining campaigns on the current market.

In addition, the node campaign gives a new application working scenario for HECO. HT holders can vote for a node candidate by staking HT to a designated HECO address, thus earning a proportional share from node revenue. At the same time, when a stable amount of HT is at stake, it adds value to the long-term appreciation of HT.

HT follows a deflationary mechanism, with Huobi buying back and burning 20% of the exchange revenue, cutting down the actual supply of HT in circulation. The interest-bearing mechanism empowers users who staked HT for node voting with an "interest-bearing deflationary asset" that generates returns in cash flow.

HECO chain requires a 5,000-Huobi Token (HT) staking deposit for any applicant to become an eligible node candidate. The staked application deposit can be returned within 15 days when an applicant decides to withdraw from the node management. All votes received before the application withdrawal will be cleared accordingly.

SOURCE Heco Chain