[ANN] SpreadCoin | True Decentralization (No Pools) | Testing New Masternodes

[oblox]

Holy shit, I'm a fiat Portfolio Manager on Wall Street and am quite technologically challenged, I can barely figure out how to mine a coin, but I just setup my first SPR masternode... Piece of cake
Make no mistake, if it's this easy and simple in the live environment, Spreadcoin will easily be a 7-figure coin in a matter of days or even hours.
When it goes live and smooth for awhile, I will personally start advising clients to move their very speculative money into Spreadcoin to get masternode dividends and that alone will make it a million dollar coin. I'm right now testing out some DRK masternode service providers however need to see more months' total returns to determine if the cost-benefit is there... It might be that the service providers eat up all earnings potential.
Anyhow Mr. Spread has upped the bar for crypto land, and potentially taken out the service providers altogether...expect lots of FUD here on out because these coins are going to be hard to pry from our fingers!
JL

I can only imagine the shitstorm your compliance team is going to have to deal with pitching that to clients.

[sony87]

@DecryptR
@TwiddlerD

You can't even figure out normal names.... seems the same, ho yes, the same person talking to each one of his identities... so sad.

[MyFarm]

Reading this --- https://darkcointalk.org/threads/v0-11-1-instantx-development-update.3769/ it almost seems like darkcoin is now trying to play catchup to spreadcoin and is going to use spreadcoins system...

Mr spread you didn't defect to the Dark side did you???

Please stop.  We're not against Darkcoin.  In fact, they're being really cool and let me post on their forum requesting masternode testers.

Evan is an excellent dev.  Mr. Spread is an excellent dev.  Invest in either coin and I suspect you'll do well in the long run as excellent devs are worth their weight in gold.  Follow them and pickup the gold chips and dust along the way.

[Jesse Livermore]

Holy shit, I'm a fiat Portfolio Manager on Wall Street and am quite technologically challenged, I can barely figure out how to mine a coin, but I just setup my first SPR masternode... Piece of cake
Make no mistake, if it's this easy and simple in the live environment, Spreadcoin will easily be a 7-figure coin in a matter of days or even hours.
When it goes live and smooth for awhile, I will personally start advising clients to move their very speculative money into Spreadcoin to get masternode dividends and that alone will make it a million dollar coin. I'm right now testing out some DRK masternode service providers however need to see more months' total returns to determine if the cost-benefit is there... It might be that the service providers eat up all earnings potential.
Anyhow Mr. Spread has upped the bar for crypto land, and potentially taken out the service providers altogether...expect lots of FUD here on out because these coins are going to be hard to pry from our fingers!
JL

I can only imagine the shitstorm your compliance team is going to have to deal with pitching that to clients.

True. But attorneys can always create extra disclaimers and agreements for clients to sign, compliance will likely require only accredited investors, and after thorough due diligence is preformed on the Spreadcoin code, and perhaps even Mr.Spread, I could see it being possible to a select few at first maybe... 6-12 months down the road assuming all goes well with testing and going live.

[Nthused]

@DecryptR
@TwiddlerD

You can't even figure out normal names.... seems the same, ho yes, the same person talking to each one of his identities... so sad.

Maybe its the Chinese trying to FUD for cheap coins before adding it to bter.com

[Hippie Tech]

I'm now banned at bitcointalk

Your entire account is?  Or just from that thread like the rest of us?

Sorry Mr. Spread, you are banned from posting or sending personal messages on this forum.
Conducting a banned altcoin giveaway (14 days)

If this is true, then how did he manage to send what appears to be a PM ?

Who said the MN testing thread was deleted ? It is fully intact and there should be a mod's note/tag stating who/why it was locked.
https://bitcointalk.org/index.php?topic=938222.0

[e1ghtSpace]

I'm now banned at bitcointalk

Your entire account is?  Or just from that thread like the rest of us?

Sorry Mr. Spread, you are banned from posting or sending personal messages on this forum.
Conducting a banned altcoin giveaway (14 days)

If this is true, then how did he manage to send what appears to be a PM ?

Who said the MN testing thread was deleted ? It is fully intact and there should be a mod's note/tag stating who/why it was locked.
https://bitcointalk.org/index.php?topic=938222.0

It's obviously from spreadcointalk. Why are you spreading FUD??

Code:

[quote author=Mr. Spread link=topic=37.msg217#msg217 date=1422388073

Notice topic 37

https://spreadcointalk.org/index.php?topic=37.msg217#msg217

[Jocuserious]

I'm now banned at bitcointalk

Your entire account is?  Or just from that thread like the rest of us?

Sorry Mr. Spread, you are banned from posting or sending personal messages on this forum.
Conducting a banned altcoin giveaway (14 days)

If this is true, then how did he manage to send what appears to be a PM ?

Who said the MN testing thread was deleted ? It is fully intact and there should be a mod's note/tag stating who/why it was locked.
https://bitcointalk.org/index.php?topic=938222.0

It was deleted.  I couldn't access it earlier.

It seems it might have been recently reinstated as the last post is almost 12 hours ago.  If that is the case then I think that it should be closed (in deference to BTCtalk rules) by Mr Spread with a re-route to spreadcointalk.

Or any other solution that works for BTCtalk.  Really, been following threads all day on spreadcointalk and everything is positive thus far.  If the thread re-opening is a precursor or an adjunct to his reinstatement then cool beans.  But the way I see it, everything is moving along nicely over there.  Kind of interesting actually.

[stonehedge]

Reading this --- https://darkcointalk.org/threads/v0-11-1-instantx-development-update.3769/ it almost seems like darkcoin is now trying to play catchup to spreadcoin and is going to use spreadcoins system...

Mr spread you didn't defect to the Dark side did you???

This is a little insulting to Evan (lead dev at Darkcoin).  He posts an update and next steps report after each version bump and I can see nothing in this update that deviates from his roadmap from three months ago.

Congrats on the seemingly successful testnet launch all.

[Hatch]

Don't feed the FUD...

1) Everyone that does their homework should be well aware that Spreadcoin was openly developed as a new and updated version of a Darkcoin branch, that itself was basically a customized adaptation of the Litecoin fork, which itself was an adaptation of a Bitcoin fork... No one ever said Spreadcoin was re-inventing the wheel from scratch. Simply put, Darkcoin has been a great improvement over the Litecoin fork of the Bitcoin base it started from, and we believe Spreadcoin could prove to be a great improvement over the Darkcoin fork it started from. Same great stealth, but a little different philosophy and implementation. Arguably a great "bloodline" all the same.

And the rest? Nonsense...

2) The Spreadcoin developer whilst trying maintaining his privacy has been nothing but open and on-time with what he has promised to date.

3) Peer reviews of his code and statements (located in previous posts in this thread) appear to demonstrate a high level of programming proficiency.

4) Pools. The developer never claimed that pools were not possible. What is clearly stated in the "White Paper", under the paragraph "Pool Prevention" is that code was put in place where any miner in a pool can broadcast directly to the network that it has found a block before the pool can transmit that information to the network so that it can report the same block. This makes it relatively easy for the reward for that block to go directly to the miner rather than the pool. Since this is the case, it makes it extremely difficult to trust that all of the miners in a given pool are actually sharing the block rewards with the pool instead of submitting the blocks directly to the network and keeping the rewards for themselves.

5) Stop for a second and take a serious look at all the accounts so suddenly making up all the negative FUD. 99% of them are brand new "sockpuppet" accounts. The other 1% might be older accounts, but if you search out their names (currently disabled here on BCT, but still searchable with Google) it is clear that FUDing is all they ever do regardless of whatever Altcoin thread they happen to be posting in at any given time. Almost like its their job... Oh. Wait a sec... Maybe it IS their job!  

Simple logic...

This is not by any means coincidental, but clearly shows an obvious and coordinated intent to rattle the uninformed and shake the loose hands in an attempt to either inflict damage on a competitor, or much more likely, so that they may accumulate at something lower than the current price.

The ONLY way that it works is if you buy into the BS and panic sell your coins for less than current market value. Pay attention to the order books. Because the majority of us are either holding or accumulating, overall volume is relatively low. This means that if one or more of these FUDders has accumulated a fair amount of SPR, they can simply coordinate with each other or individually short sell to themselves in order to artificially drive down the price and scare the uninformed or skittish investors into dumping.

Don't focus so much on the last price, but instead on the depth in BTC value of the low ball trades and sell orders. A real correction will generally start gradually and then ramp up to look like a flood of sell orders equaling a LARGE amount in BTC. Not just a BTC or two worth of low ball trades usually pushing the price down just low enough to trigger stop loss autobots and loose hands... Don't be fooled into taking the bait. Keep in mind that to manipulate the market like this, they must put a portion of their holdings at risk on the market short selling enough to push the price down. At this point, usually one of two things happen. People either panic and start selling into the manipulators buy orders at this artificially low price, having the effect of pushing it even lower, giving the "bad guys" the cheap coins they were after in the first place and allowing them to accomplish their goal, OR, they simply buy up all of the manipulators low ball sell orders until the "bad guys" eventually run out of the funds they had allotted to manipulate the price, making them lose those funds to the market at a loss.  

Remember that we are in the Wild Wild West of unregulated trading. It is both an exhilarating and sometimes scary place to be with all of the responsibility of your success or failure falling squarely upon your own shoulders, with very little or no chance of recovery from a bad decision. This also means that there are no regulations or legal consequences forcing people to toe the moral line. Unethical people can and will use FUD and anything else they can think of to con you into dumping your holdings so they can quietly accumulate during your fall and profit (at your loss) on the price recovery or bounce. Don't make snap judgements based on what other people broadcast in these forums or on twitter. Take the time to reference back through the threads and DYOR (do your own research) before making trading decisions. And if you do not understand what is being talked about or what a given subject means in the overall scheme of things, please ask. This is one of the friendliest and supportive Altcoin communities I have experienced to date, and there are lots of "old timers" that will be happy to answer HONEST inquiries if you'll give them the chance.

Happy Trading!

[Hippie Tech]

I'm now banned at bitcointalk

Your entire account is?  Or just from that thread like the rest of us?

Sorry Mr. Spread, you are banned from posting or sending personal messages on this forum.
Conducting a banned altcoin giveaway (14 days)

If this is true, then how did he manage to send what appears to be a PM ?

Who said the MN testing thread was deleted ? It is fully intact and there should be a mod's note/tag stating who/why it was locked.
https://bitcointalk.org/index.php?topic=938222.0

It's obviously from spreadcointalk. Why are you spreading FUD??

Code:

[quote author=Mr. Spread link=topic=37.msg217#msg217 date=1422388073

Notice topic 37

https://spreadcointalk.org/index.php?topic=37.msg217#msg217

Maaan ! Not only is Mr Spread adept at :
- flash/easymining his own coin
- neglecting to back up his shit
- losing some or all of his easymined plunder
- demanding that he be paid up front if he is to continue developing copy n pasting SPR
edit
- duping the gullable into paying up
- altering / rigging SPR in ways that are most benefitial to the insiders and whales

He is also pretty damn good at cloning this forum ! lolz

edit II

[stonehedge]

Don't feed the FUD...

Everyone that does their homework should be well aware that Spreadcoin was openly developed as a new and updated version of the Darkcoin branch, that itself is basically a customized adaptation of a Bitcoin branch... No one ever said Spreadcoin was re-inventing the wheel from scratch. Simply put, Darkcoin has been a great improvement over the Bitcoin base it started from, and we believe Spreadcoin could prove to be a great improvement over the Darkcoin base. Definitely a different philosophy and implementation, but a great "bloodline" regardless coming from that base.

Just a couple of minor corrections for the sake of pedantry and clarity.  Darkcoin was a fork from Litecoin not Bitcoin. Darkcoin's most recent major update was to port to the latest Bitcoin codebase which means Darkcoin is now a fork of Bitcoin and Spreadcoin is running on the old Litecoin code. 

[Hatch]

Just a couple of minor corrections for the sake of pedantry and clarity.  Darkcoin was a fork from Litecoin not Bitcoin. Darkcoin's most recent major update was to port to the latest Bitcoin codebase which means Darkcoin is now a fork of Bitcoin and Spreadcoin is running on the old Litecoin code.  

Thanks for the clarification...

While none of that changes the sentiment of the point I was trying to get across, I did edit the post for accuracy.  

[cryptmin4r]

Currently there are 3 groups trolling at this thread

         1. those who want to get spr cheap
         2. some Wackos like Hippie Tech
         3. Those who from Darkcoin- oblox , tungfa etc and many more with dummy accounts

What is the efficient way to deal with them?

1. use iron-fist to deal them
2. Ignore them
3. counter attack at darkcoin thread

What ever their intentions they are only making Spreadcoin popular. There may be people who sells huge volume purposefully , just to create panic in the market thinking people will scare away from spread ,but it is proven wrong. Price bounce back and this will increase the confidence of spread investors and to ignore those artificially crafted chaos.

[stonehedge]

Currently there are 3 groups trolling at this thread

         1. those who want to get spr cheap
         2. some Wackos like Hippie Tech
         3. Those who from Darkcoin- oblox , tungfa etc and many more with dummy accounts

What is the efficient way to deal with them?

1. use iron-fist to deal them
2. Ignore them
3. counter attack at darkcoin thread

What ever their intentions they are only making Spreadcoin popular. There may be people who sells huge volume purposefully , just to create panic in the market thinking people will scare away from spread ,but it is proven wrong. Price bounce back and this will increase the confidence of spread investors and to ignore those artificially crafted chaos.

If you genuinely believe that well respected members of the Darkcoin community and team are posting on here with dummy accounts then I suggest you just click ignore.  The individuals you mention are far too busy promoting Darkcoin to worry about possible competition in the future from our first proper forked coin.  From experience of the Darkcoin thread over the last year, the worst trolls almost always turn out to be supporters of your coin who want to buy cheap.  

Any high profile Darkcoin supporters who are over here are interested in how you are developing the Darkcoin technology.  No more, no less.

[cryptmin4r]

Currently there are 3 groups trolling at this thread

         1. those who want to get spr cheap
         2. some Wackos like Hippie Tech
         3. Those who from Darkcoin- oblox , tungfa etc and many more with dummy accounts

What is the efficient way to deal with them?

1. use iron-fist to deal them
2. Ignore them
3. counter attack at darkcoin thread

What ever their intentions they are only making Spreadcoin popular. There may be people who sells huge volume purposefully , just to create panic in the market thinking people will scare away from spread ,but it is proven wrong. Price bounce back and this will increase the confidence of spread investors and to ignore those artificially crafted chaos.

If you genuinely believe that well respected members of the Darkcoin community and team are posting on here with dummy accounts then I suggest you just click ignore.  The individuals you mention are far too busy promoting Darkcoin to worry about possible competition in the future from our first proper forked coin.  From experience of the Darkcoin thread over the last year, the worst trolls almost always turn out to be supporters of your coin who want to buy cheap.  

Any high profile Darkcoin supporters who are over here are interested in how you are developing the Darkcoin technology.  No more, no less.

i agree with you.  i think both should operate in GIVE and TAKE manner. i think that is already happening well.

[RenegadeMan]

Currently there are 3 groups trolling at this thread

         1. those who want to get spr cheap
         2. some Wackos like Hippie Tech
         3. Those who from Darkcoin- oblox , tungfa etc and many more with dummy accounts

What is the efficient way to deal with them?

1. use iron-fist to deal them
2. Ignore them
3. counter attack at darkcoin thread

What ever their intentions they are only making Spreadcoin popular. There may be people who sells huge volume purposefully , just to create panic in the market thinking people will scare away from spread ,but it is proven wrong. Price bounce back and this will increase the confidence of spread investors and to ignore those artificially crafted chaos.

If you genuinely believe that well respected members of the Darkcoin community and team are posting on here with dummy accounts then I suggest you just click ignore.  The individuals you mention are far too busy promoting Darkcoin to worry about possible competition in the future from our first proper forked coin.  From experience of the Darkcoin thread over the last year, the worst trolls almost always turn out to be supporters of your coin who want to buy cheap.  

Any high profile Darkcoin supporters who are over here are interested in how you are developing the Darkcoin technology.  No more, no less.

I'd back up what stonehedge has said 100%. Honestly, we've experienced some of the worst trolling you can imagine in the DRK thread over the past year. Long term committed followers of DRK like myself and stonehedge, are just so over seeing the pithy, lame and childish manner in which these people operate. The DRK team is very serious and professional. While you may get the occasional flippant comment, on the whole DRK people feel pretty good that Mr Spread grabbed hold of this opportunity so quickly and so effectively (it indicates how substantial Darkcoin is and what a strong base to build on it's provided). It's just going to be so interesting to see how this all plays out and I can see long term synergistic relationship between DRK & SPR that will benefit everyone.

We don't need to have immature tribal rivalry and mindless spit-for-spat interactions with people who're from the DRK camp. Many of them are very keen to see SPR do well too (as are many SPR people keen to see DRK be successful as well). Lets just focus on getting the word about these amazing cryptocurrencies out to the broader community.

[stonehedge]

Currently there are 3 groups trolling at this thread

         1. those who want to get spr cheap
         2. some Wackos like Hippie Tech
         3. Those who from Darkcoin- oblox , tungfa etc and many more with dummy accounts

What is the efficient way to deal with them?

1. use iron-fist to deal them
2. Ignore them
3. counter attack at darkcoin thread

What ever their intentions they are only making Spreadcoin popular. There may be people who sells huge volume purposefully , just to create panic in the market thinking people will scare away from spread ,but it is proven wrong. Price bounce back and this will increase the confidence of spread investors and to ignore those artificially crafted chaos.

If you genuinely believe that well respected members of the Darkcoin community and team are posting on here with dummy accounts then I suggest you just click ignore.  The individuals you mention are far too busy promoting Darkcoin to worry about possible competition in the future from our first proper forked coin.  From experience of the Darkcoin thread over the last year, the worst trolls almost always turn out to be supporters of your coin who want to buy cheap.  

Any high profile Darkcoin supporters who are over here are interested in how you are developing the Darkcoin technology.  No more, no less.

I'd back up what stonehedge has said 100%. Honestly, we've experienced some of the worst trolling you can imagine in the DRK thread over the past year. Long term committed followers of DRK like myself and stonehedge, are just so over seeing the pithy, lame and childish manner in which these people operate. The DRK team is very serious and professional. While you may get the occasional flippant comment, on the whole DRK people feel pretty good that Mr Spread grabbed hold of this opportunity so quickly and so effectively (it indicates how substantial Darkcoin is and what a strong base to build on it's provided). It's just going to be so interesting to see how this all plays out and I can see long term synergistic relationship between DRK & SPR that will benefit everyone.

We don't need to have immature tribal rivalry and mindless spit-for-spat interactions with people who're from the DRK camp. Many of them are very keen to see SPR do well too (as are many SPR people keen to see DRK be successful as well). Lets just focus on getting the word about these amazing cryptocurrencies out to the broader community.

I'd just like to add that many of the Darkcoin team (myself included) have revealed our real identities and therefore are associating our professional reputations with Darkcoin.  If we are associated with unethical behaviour it has the potential to affect us beyond these boards and the crypto world.

[cryptmin4r]

Currently there are 3 groups trolling at this thread

         1. those who want to get spr cheap
         2. some Wackos like Hippie Tech
         3. Those who from Darkcoin- oblox , tungfa etc and many more with dummy accounts

What is the efficient way to deal with them?

1. use iron-fist to deal them
2. Ignore them
3. counter attack at darkcoin thread

What ever their intentions they are only making Spreadcoin popular. There may be people who sells huge volume purposefully , just to create panic in the market thinking people will scare away from spread ,but it is proven wrong. Price bounce back and this will increase the confidence of spread investors and to ignore those artificially crafted chaos.

If you genuinely believe that well respected members of the Darkcoin community and team are posting on here with dummy accounts then I suggest you just click ignore.  The individuals you mention are far too busy promoting Darkcoin to worry about possible competition in the future from our first proper forked coin.  From experience of the Darkcoin thread over the last year, the worst trolls almost always turn out to be supporters of your coin who want to buy cheap.  

Any high profile Darkcoin supporters who are over here are interested in how you are developing the Darkcoin technology.  No more, no less.

I'd back up what stonehedge has said 100%. Honestly, we've experienced some of the worst trolling you can imagine in the DRK thread over the past year. Long term committed followers of DRK like myself and stonehedge, are just so over seeing the pithy, lame and childish manner in which these people operate. The DRK team is very serious and professional. While you may get the occasional flippant comment, on the whole DRK people feel pretty good that Mr Spread grabbed hold of this opportunity so quickly and so effectively (it indicates how substantial Darkcoin is and what a strong base to build on it's provided). It's just going to be so interesting to see how this all plays out and I can see long term synergistic relationship between DRK & SPR that will benefit everyone.

We don't need to have immature tribal rivalry and mindless spit-for-spat interactions with people who're from the DRK camp. Many of them are very keen to see SPR do well too (as are many SPR people keen to see DRK be successful as well). Lets just focus on getting the word about these amazing cryptocurrencies out to the broader community.

yes working together only strengthens both community . It seems Mr. Spread get Instantx idea from Evans whitepaper Also Darkcoin is benefiting from Spreadcoin's Decentralized MN selection

Quote from Mr.spread @https://bitcointalk.org/index.php?topic=938222

How masternodes are elected?
Each node monitor the network and assign scores to each masternode. This scores depend on how well masternodes provide their services, for instant transactions this will be time delay between transaction and its confimation by masternode. Since there may be no transactions and only elected masternodes will confirm transactions there is an empty service - each masternode will broadcast messages signining certain blocks to prove that it is running. Miners will include votes in their blocks. Votes can either be positive (elect not yet elected masternode) or negative (deelect already elected masternode). If masternode has more than 30 positive votes in the last 60 blocks then it is added to the list of elected masternodes. If masternode has more then 30 negative votes in the last 60 blocks then it is removed from the list of elected masternodes. Note that it is possible to determine which masternodes were elected at each particular block.

Wouldn't storing votes in blockchain make it too large?
No, there is a limit of 10 votes per block and most blocks will have less votes.

Quote from Evan @ https://darkcointalk.org/threads/v0-11-1-instantx-development-update.3769/

Decentralization of the masternode payment system


To decentralize this system, we propose a new system we’ll call “Masternode mining”. This simply means that when miners receive a new “masternode election entry” and solve a block, they will append the masternode to the block. Each block can contain up to 10 masternode list changes. So by following the normal progression of the blockchain, you will be able to compile a list of all known masternodes. This system is also highly resistant to attack and the same list can be compiled by any client on the network.

[stonehedge]

Currently there are 3 groups trolling at this thread

         1. those who want to get spr cheap
         2. some Wackos like Hippie Tech
         3. Those who from Darkcoin- oblox , tungfa etc and many more with dummy accounts

What is the efficient way to deal with them?

1. use iron-fist to deal them
2. Ignore them
3. counter attack at darkcoin thread

What ever their intentions they are only making Spreadcoin popular. There may be people who sells huge volume purposefully , just to create panic in the market thinking people will scare away from spread ,but it is proven wrong. Price bounce back and this will increase the confidence of spread investors and to ignore those artificially crafted chaos.

If you genuinely believe that well respected members of the Darkcoin community and team are posting on here with dummy accounts then I suggest you just click ignore.  The individuals you mention are far too busy promoting Darkcoin to worry about possible competition in the future from our first proper forked coin.  From experience of the Darkcoin thread over the last year, the worst trolls almost always turn out to be supporters of your coin who want to buy cheap.  

Any high profile Darkcoin supporters who are over here are interested in how you are developing the Darkcoin technology.  No more, no less.

I'd back up what stonehedge has said 100%. Honestly, we've experienced some of the worst trolling you can imagine in the DRK thread over the past year. Long term committed followers of DRK like myself and stonehedge, are just so over seeing the pithy, lame and childish manner in which these people operate. The DRK team is very serious and professional. While you may get the occasional flippant comment, on the whole DRK people feel pretty good that Mr Spread grabbed hold of this opportunity so quickly and so effectively (it indicates how substantial Darkcoin is and what a strong base to build on it's provided). It's just going to be so interesting to see how this all plays out and I can see long term synergistic relationship between DRK & SPR that will benefit everyone.

We don't need to have immature tribal rivalry and mindless spit-for-spat interactions with people who're from the DRK camp. Many of them are very keen to see SPR do well too (as are many SPR people keen to see DRK be successful as well). Lets just focus on getting the word about these amazing cryptocurrencies out to the broader community.

yes working together only strengthens both community . It seems Mr. Spread get Instantx idea from Evans whitepaper Also Darkcoin is benefiting from Spreadcoin's Decentralized MN selection

Quote from Mr.spread @https://bitcointalk.org/index.php?topic=938222

How masternodes are elected?
Each node monitor the network and assign scores to each masternode. This scores depend on how well masternodes provide their services, for instant transactions this will be time delay between transaction and its confimation by masternode. Since there may be no transactions and only elected masternodes will confirm transactions there is an empty service - each masternode will broadcast messages signining certain blocks to prove that it is running. Miners will include votes in their blocks. Votes can either be positive (elect not yet elected masternode) or negative (deelect already elected masternode). If masternode has more than 30 positive votes in the last 60 blocks then it is added to the list of elected masternodes. If masternode has more then 30 negative votes in the last 60 blocks then it is removed from the list of elected masternodes. Note that it is possible to determine which masternodes were elected at each particular block.

Wouldn't storing votes in blockchain make it too large?
No, there is a limit of 10 votes per block and most blocks will have less votes.

Quote from Evan @ https://darkcointalk.org/threads/v0-11-1-instantx-development-update.3769/

Decentralization of the masternode payment system


To decentralize this system, we propose a new system we’ll call “Masternode mining”. This simply means that when miners receive a new “masternode election entry” and solve a block, they will append the masternode to the block. Each block can contain up to 10 masternode list changes. So by following the normal progression of the blockchain, you will be able to compile a list of all known masternodes. This system is also highly resistant to attack and the same list can be compiled by any client on the network.

Darkcoin included this functionality in RC3 (6+ months ago?) but then reverted due to problems causing a fork the dev team couldn't solve.  Looks like Spreadcoin and Darkcoin have found a solution!  Perfect demonstration on how we can benefit from each other.