Look at the richlist and you will notice how significant 1000 XLR is. Not many wallets can setup masternodes with 1000 XLR as collateral.
Moreover, more full nodes are good to secure the network.
at 1000 XLR, only 80 wallets are eligible.
If its POW + MN, reward could be split equally but if it is POS + MN, then MN should be significantly higher than POS, lest there will be little motivation to hold collateral
Too few coins for nodes = not constricting supply much = not much difference in price when ppl buy nodes.
You also end up with very many nodes sharing the rewards.
Like Chaincoin.
Its got almost 2500 masternodes now i think, and still not locking up enough coins.
The result is a cheap coin, with cheap nodes giving low value rewards.
This means each time somenoe wants a node, the market is boosted 0.04 btc+.
The opposite with BSD.
Only 300something nodes running. Each node costing 2BTC+.
This means each time somenoe wants a node, the market is boosted 2btc+.
So you see how much each node investment will affect the markets.
The number of coins is really important. Constrict the supply, and demand will fight for the coins left.
Too few coins locked in nodes, and there will still be too many coins for sale.
buying 1000 XLR on the market will cause a noticeable spike in price so its ok
BSD masternode costs 2BTC because of its marketcap.
Do you know how much XLR masternode will cost at coinmarketcap position 70 if collateral is 1000??
answer: about 38 BTC
in theory XLR masternode at collateral of 1000 is almost same as BSD masternode.
@Solaris Dev, lets make the XLR masternode collateral 1500; As you said, we want it to be affordable but not cheap
and should pay out a lot more than POS or equal to POW