XDC Network Masternodes

Types of Nodes on the XDC Network

Let's explore all the types of Nodes on the XDC Network.

1. Full Node

Anyone can set up a Full Node on the XDC Network.
No staking required — no rewards.
Used primarily to fetch data from the blockchain.
Ideal for developers and explorers who want access to real-time blockchain state without participating in block validation.

2. Archive Node

An enhanced version of the Full Node.
Stores the entire historical blockchain data.
Useful for applications and dApps that need deep historical reference points.
It is not mandatory for standard users, but it is valuable for analytics, explorers, and data-heavy services.

3. Masternode

The most critical type of node on the XDC Network.
Requires a minimum 10 million XDC contribution (no upper limit).
Validates transactions and mines blocks.
Participates in consensus and governance voting.
Ensures network uptime, security, and decentralization.
Earns block rewards and incentives for active participation.
Must maintain 100% uptime on a dedicated or cloud server infrastructure.

4. Protector Node

A new addition under the XDC 2.0 consensus architecture.
Requires a minimum 10 million XDC contribution (no upper limit).
Acts as backup for Core Validator Masternodes — 2x Protector Nodes for each Core Validator.
Enhances network fault tolerance and supports seamless block production during disruptions.
Earns proportional rewards from the Core Validator’s reward pool (based on the number of associated Protector Nodes).
Ensures network resilience through redundancy, adding another layer of security.

5. Observer Node

Another new addition in XDC 2.0’s layered consensus architecture.
Requires a minimum 10 million XDC contribution (no upper limit).
Non-block-producing node that participates by observing consensus and broadcasting transactions.
Ideal for users and organizations that want to contribute to decentralization and potentially move up to Protector or Validator roles.
Receives 50% of the Protector Node reward, offering passive earning potential without active consensus participation.

Why Masternodes and Validator Infrastructure Matter

Let's explore all the components.

Transaction Validation

Only Masternodes (Core Validators) are responsible for validating and approving transactions under the XDC 2.0 Proof-of-Stake consensus.

Instant Transactions

Masternodes enable near-instant confirmation, which powers seamless experiences for real-world payments and dApps.

Governance Participation

Validator and Protector Nodes actively vote on proposals, contribute to upgrade decisions, and shape the direction of the network.

Security & Stability

A layered node architecture — Core Validators, Protector Nodes, and Observer Nodes — creates a fault-tolerant, distributed infrastructure resistant to downtime or attack.

Incentivized Participation

Validators, Protectors, and Observers are rewarded for their contribution with XDC tokens, making participation financially beneficial.

XDC Validator Network Stats (illustrative)

Masternodes (Core Validators)

108

ROLE: Block validation, consensus

REWARDS: 6000 XDC per epoch

Protector Nodes

432 (4x Core Validators)

ROLE: Redundancy, fault tolerance

REWARDS: Rv ÷ number of Protectors

Observer Nodes

Unlimited

ROLE: Network observation

REWARDS: ½ × Protector Node reward

Total XDC Locked

3,711 M

XDC

Reward Distribution: Masternode rewards are distributed automatically on-chain with every block. Rewards for Protector Nodes and Observer Nodes are currently distributed from the XDC Ecosystem Reward Wallet. Full on-chain automation for Protector and Observer Node rewards is planned for a future network upgrade, currently targeted for October 2026, subject to successful development, testing, governance approval, and mainnet deployment. Until then, the current distribution process will continue.

Disclaimer: All numbers provided are indicative and based on past performance; there is no guarantee of similar rewards in the future. Participation in setting up a masternode or standby node is part of an ongoing innovation project and should be viewed as a contribution to the advancement of blockchain technology, with no assurance of future returns.

Node Requirements

XDC Masternodes help the network remain fast, scalable, secure, and decentralized.

NODE TYPE	MINIMUM XDC	UPTIME	NOTES
Full Node	None	Optional	No rewards
Archive Node	None	Optional	No rewards, full chain data
Observer Node	10M	Not mandatory	½ × Protector reward
Protector Node	10M	Recommended 100%	Redundancy support
Core Validator Node	10M	100% uptime required	Block rewards and governance

Leading Infrastructure Operators and Trusted Institutions

A Network Secured by Leading Infrastructure Operators and Trusted Institutions.

Third-Party Masternode Services

If you do not have the resources to maintain a Masternode, there are a number of third-party services and volunteers willing to provide you with top-notch support and services.

DISCLAIMER: XDC Network does not officially endorse third-party services. Please perform due diligence before proceeding.

Guides and Documentation

Looking for more details or instructions? No Problem. We've got you covered.

Docker Setup

A quick guide to running an XDC Network node using Docker, enabling fast deployment, simplified configuration, and easy maintenance. Ideal for developers and node operators looking to set up a secure, production-ready XDC environment.

Learn More

FAQs

Here are some frequently asked questions.

You can set up the master on the Windows server with a click installer or using a Docker-Compose file. For more details, please visit the XinFin Masternode setup page.

As with any cryptocurrency venture, there are inherent risks involved. It's essential to do thorough research and understand the potential risks before setting up a Masternode.

You can withdraw the rewards you earn from running a Masternode on the XDC Network.

Running a Masternode allows you to participate in the XDC Network actively, contribute to its operation, and earn rewards for your involvement.

You can run as many Masternodes as you wish! However, each Masternode must meet specific requirements outlined on the XDC Network Masternode Setup page.

The Coinbase Address is your Masternode address, whereas the Masternode Owner Address is associated with the wallet where you staked 10 million XDC.

Masternode rewards are distributed to owners after each epoch, consisting of 900 blocks.

An epoch completes in approximately 50 minutes, during which 900 blocks are mined.

Currently, the XDC Network boasts a robust capacity of 2000+ transactions per second (TPS).

Certainly! You can explore and experiment with the XDC Network's TestNet at http://apothem.network.

Backing up your Coinbase address is crucial. If lost, your Masternode will be inaccessible, requiring you to resign from the network.

Loss of your Coinbase address results in your Masternode going offline. You will need to resign from the Masternode under such circumstances.

Losing your keystore or private key means your funds are inaccessible, and you won't receive rewards. Always ensure you have secure backups to prevent this loss.

Resigning from a Masternode requires 30 days before you can retrieve your 10 million XDC.

If your node is down, it may be marked as "slashed". Ensure your node remains operational to avoid this status.

Need More Help?

Seeking help with setting up an XDC masternode? Access XDC documents, ask in the XDC Forum, or join Telegram's Developers community for assistance.

The Backbone of a Fast, Secure, and Decentralized Network