Denarius uses a custom masternode system based on DASH called dFPS. dFPS is a Decentralized Fair Payment System. A FortunaStake receives 33% of rewards per block, which works on a 3 round system to fairly distribute block rewards.
The Decentralized Fair Payment System first ever introduced on the Denarius (D) blockchain seeks to decentralize masternode rewards with a fair and balanced reward system based on taking the current block hash, scanning back what happened in XYZ blocks, and then balancing out rewards all decentralized within protocol on the Denarius (D) network.
Users send the collateral amount to an address (5,000 D) and then waits 500 confirmations, approx. ~4 hours. After 500 confirmations, the Fortuna Stake (masternode) can be started. The hashed Denarius address enters the registered mode within the network of Fortuna Stakes (masternodes) and now waits for one full round of payments. One full round of payments is equal to how many Fortuna Stakes are already active. For example, there are 446 Fortuna Stakes online at the time of this writing, you would need to wait essentially 446 blocks for a full round of payments. Once this round ends, the FS node (masternode) changes to Active for Payment, and will begin receiving fair and balanced payments decentralized through the Denarius (D) network for both Proof of Stake and Proof of Work block rewards.
The Denarius dFPS network decides who to pay, based on the income amounts of that particular Fortuna Stake (masternode), and whether the Fortuna Stake (masternode) is an active node or not. Every time the network checks a Fortuna Stake payment, the node/wallet searches back in time to find out how much everyone got paid on XYZ past blocks. The dFPS system within Denarius (D) ranks those Fortuna Stakes (masternodes) based on how much they have been paid compared to other nodes, and then calculates an average of how much is paid. If any FS (masternode) is paid more than the average, then the block will be rejected by the network. Block rejection is when the block does not get validated or accepted into the blockchain. If the FS (masternode) has a large consensus average paid reward across the network it will be paid appropriately during the payment rounds and the block containing its payment will be accepted into the network. The decentralized fair payment system was originally implemented into Fortuna Stakes (masternodes) on the Denarius (D) blockchain for the first time ever.
The Decentralized Fair Payment System has its roots from DASH (previously Darkcoin) as the DSEE and DSEEP messages are based off of the original DarkSend protocol. These messages are the heartbeat signal keeping all of the active wallets in sync with the Fortuna Stake (masternode) list and protocol across nodes. Masternodes always had a large flaw of being centralized throughout its different implementations such as DASH and not even being considered by Bitcoin, Litecoin, Monero, and other cryptocurrencies. dFPS solves the problem of centralized masternodes and enables a fully decentralized network with Denarius (D) and its Fortuna Stakes.