Masternodes are servers that are established by community members that perform functions like processing swift transactions on a decentralized network. It is utilized to complete unique functions in ways ordinary nodes can’t. Masternodes are a very important layer to GUAP Coin’s blockchain & governance.  Masternodes are privately held by individuals or groups in the community known as GUAP Governors. The node itself resides on a Virtual Private Server and in order to possess one you must have 10,000 GUAP Coins to stake as collateral.

GUAP Governors earn GUAP Coins as an incentive to maintain a masternode. The coins they earn are newly minted coins that originate from the blockchain itself. Masternodes earn 80{019a0857b22fe5fcb6a21018a39746f62f04faef247b2b9cb39e7c1ff4d25dbc} of the block reward that is generated from the creation of every new block. Which masternode is selected to get the block reward is a random process that increases in complexity as the number of masternodes increase.