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Reward active participation in the network, such as block validation and staking.
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Ensure the economic sustainability of the XDC Network over time.</p>
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<h2id="masternode-operator-rewards">Masternode Operator Rewards<aclass="headerlink" href="#masternode-operator-rewards" title="Link to this section">¶</a></h2>
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<p>The reward mechanism on the XDC Network is designed to incentivize both Masternodes (active validators) and Standby Nodes (backup validators) for maintaining network security, uptime, and performance.
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<strong>Rewards are distributed based on:</strong>
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- Staking 10 M XDC
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- Node activity (block validation / signatures)
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- Participation within each epoch</p>
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<p>The reward mechanism on the XDC Network is designed to incentivize both Masternodes (active validators) and Standby Nodes (backup validators) for maintaining network security, uptime, and performance.</p>
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<p><strong>Rewards are distributed based on:</strong></p>
<p><strong>All participating nodes must lock the required stake to:</strong>
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- Become eligible for rewards
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- Participate in consensus or standby operations</p>
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<p><strong>All participating nodes must lock the required stake to:</strong></p>
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<ul>
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<li>Become eligible for rewards</li>
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<li>Participate in consensus or standby operations</li>
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</ul>
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<h3id="annual-reward-rates-apr-model">Annual Reward Rates (APR Model)<aclass="headerlink" href="#annual-reward-rates-apr-model" title="Link to this section">¶</a></h3>
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<p>The reward system follows a fixed annual percentage return model:</p>
<p><strong>Actual rewards may vary slightly based on:</strong>
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- Participation rate
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- Network conditions
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- Validator set size</p>
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<p><strong>Actual rewards may vary slightly based on:</strong></p>
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<ul>
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<li>Participation rate</li>
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<li>Network conditions</li>
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<li>Validator set size</li>
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</ul>
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<h3id="standby-node-reward-logic">Standby Node Reward Logic<aclass="headerlink" href="#standby-node-reward-logic" title="Link to this section">¶</a></h3>
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