I was thinking about this, the normal argument is that a masternode maintains a price floor because people are holding collateral.
But what about the constant sell pressure from masternode rewards? It requires there to be more buyers(higher than the inflation rate or reward rate of the coin)
Any thoughts on this?
Masternodes lead people hodl their coins which limits the supply in the market. Whether the price will go up and down will depend upon the percentage reward the masternode will give. We can't give an comprehensive analysis on all the MN coins. ROI plays a big role in determining whether the coin will be profitable or not. For example, DASH and PIVX, they are quite popular MN altcoins and their ROI is 7.13% and 6.28% respectively which doesn't bring much inflation. But altcoins with high rewards are destined to fail because of excessive selling pressure. I have seen this happening with XGOX. Also, coins with high ROI if not fails isn't able to grow much in price like SmartCash.