Developers Forum for XinFin XDC Network: Wanwiset Peerapatanapokin

How XDC Masternodes Are Selected from Validators

Wanwiset Peerapatanapokin — Tue, 28 Jul 2026 09:05:28 +0000

This article gives a simple, quick understanding of Validators and how Masternodes are selected from them on XDC.

First, let's cover the terminology.

Terminology

Validator — an address that has staked a minimum of 10 million XDC on the XDCValidator contract (0x00...0088).
Masternode — a Validator in the active state, responsible for mining blocks and keeping the network alive.
Standbynode — a Validator waiting in reserve to become a Masternode when an active Masternode drops out.
Penaltynode — a Validator that has failed to perform its duties (e.g. an offline node) and has been temporarily removed from active duty.

Masternode Selection

Masternodes are selected from the pool of Validators by ranking them on stake amount — simply put, the top stakers get in. The maximum number of Masternodes is 108, so the top 108 Validators become active Masternodes. Every epoch (~900 blocks, ~30 minutes) the list is re-calculated.

When Validators have staked the same amount (for example, all sitting at the 10M minimum), the tie-break is decided by the sorting algorithm — the resulting order looks arbitrary but is deterministic.

A non-performing Validator (a Penaltynode) is excluded from this calculation.

You can view current staking numbers and rankings on the XDC Masternode Dashboard.

Reward Distribution

Every epoch (~900 blocks, ~30 minutes) a fixed reward of 5,000 XDC is shared among the active Masternodes — roughly 46 XDC per Masternode (90% goes to the node owner, 10% to the XDC Treasury). Over a year this works out to approximately 10% APY.

Note: The ~10% APY is not guaranteed. Rewards are tied to block production — they are only paid out as blocks are created.

Rewards are based on the fixed 10M stake only; staking more than 10M does not earn additional rewards. However, topping up above 10M can raise your ranking and therefore improve your chance of getting into the top 108 and becoming an active Masternode.

Standbynodes do not receive on-chain rewards today, but currently receive manual rewards monthly, funded by the XDC Treasury wallet. In the next protocol upgrade (ETA 2026), Standby nodes will be split into Protector and Observer nodes, and their rewards will be automated and paid out on-chain.

Penaltynodes do not receive any rewards.

FAQ

When are Masternode rewards paid?
Masternode rewards are paid automatically on-chain at the end of every epoch (~900 blocks, ~30 minutes).

When does the active Masternode set change?
At the epoch boundary — every ~900 blocks — the list is re-calculated and any changes take effect.

How are Validators with the same stake ranked?
Validators are ranked purely by stake, from highest to lowest. When several have staked the same amount (for example, all at the 10M minimum), the tie-break is decided by the sorting algorithm. The resulting order looks arbitrary and isn't based on anything a Validator controls, but it is deterministic — it's not random, and the network always arrives at the same order.

What is the limit to the number of Standbynodes?
No — there is currently no limit on the number of Standbynodes. In the next protocol upgrade (ETA 2026), Standby will be split into Protector and Observer tiers, which will have maximum limits.

How does a Penaltynode recover?
A penalised node rejoins by submitting signing transactions, which confirm it is back online and ready to resume its duties.

How do I become a Masternode from a Standbynode?
Stake additional XDC on top of your 10M so that your ranking rises into the top 108 Validators.

How do I stake on the Validator contract?
Staking requires locking 10M XDC and a KYC process. It's not covered in this article — see the Masternode Setup Guide and XDC Network Staking Portal (Governance).

XDC Subnet Official Release

Wanwiset Peerapatanapokin — Tue, 08 Oct 2024 07:07:11 +0000

The launch of XDC2.0 on the XDC Mainnet marks a significant milestone, bringing substantial improvements to both consensus mechanisms and security protocols. Not only that, this upgrade also enables XDC-Subnet on Mainnet. With that in mind, we are pleased to announce the official release of Subnet v1, complete with a comprehensive suite of tools and ecosystem components designed to streamline development and deployment processes.

What is XDC Subnets

XDC Subnets can be understood as individual sidechains within the XinFin XDC Network ecosystem. These subnets operate independently while borrowing security of the main XDC Network through the use of Relayers and Checkpoint Smart Contracts. Each XDC Subnet can have its own tokenomics, and governance rules, making it a highly customizable and flexible solution.

Benefits of XDC Subnets

XDC Subnets offer several significant advantages in blockchain technology.

Privacy: Subnet transactions remain private, as only block header information is checkpointed to the XDC mainnet, enhancing data protection. Subnet owner has full control over who can access the Subnet.

Cost Reduction: Transactions on Subnets are practically free, your costs will only be reduced to regular checkpointing transactions to the XDC mainnet. Making it more feasible for both individuals and enterprises to participate.

Scalability: Avoid network congestion by processing transactions on separate sidechains, increasing overall transaction capacity.

Efficiency: Subnets allow for better resource allocation, with different use cases assigned to specific subnets to prevent resource contention.

Transparency & Customization: All of Subnet's codebase is open source. Everyone is free to contribute or make modifications of their own deployment. Each subnet can have unique rules and tokens, enabling tailored solutions for various applications like supply chain management or DeFi.

Interoperability: Subnets can interact with the main XDC Network through XDC-Zero, our provided cross-chain communication framework, facilitating asset transfers across the ecosystem.

Features of XDC Subnets

Rapid Deployment: Our intuitive UI configuration generator enables the setup and launch of a new subnet within 10 minutes, streamlining the deployment process.
XDC-Zero Interoperability: XDC-Zero, our advanced cross-chain system, facilitates seamless blockchain interoperability. It ensures efficient and secure data transmission between the Parentchain and Subnet, enhancing overall network connectivity.
Comprehensive Ecosystem Tools: We provide a suite of components to enhance your Subnet experience.

Subnet Explorer: For real-time blockchain data visualization and analysis
Node Management Interface: Simplifies the process of operating and maintaining network nodes
Faucet Server: Enables easy distribution of test tokens for development and testing purposes

Luanch your XDC-Subnet in 10 minutes

Below is a guide that follows our documentation.
https://xinfinorg.github.io/xdc-subnet-docs/deployment/launch_subnet/

Video Walkthrough:

Steps:

Clone the generator script

curl -O https://raw.githubusercontent.com/XinFinOrg/XinFin-Node/master/subnet/deployment-generator/scripts/generate.sh

Run the generator script

chmod +x generate.sh
./generate.sh
cd generated

Go to http://localhost:5210/ in your browser.
Input the parameters for your Subnet.
Follow the generated instructions in commands.txt.
Once successfully deployed, visit the Subnet UI at http://localhost:5214/

Checkout Using the Subnet docs for more information on the UI, Explorer, and Faucet
https://docs.xdc.network/subnet/using_subnet/using_subnet/

Subnet Documentation and Repositories

https://docs.xdc.network/subnet/
https://github.com/XinFinOrg/XDC-Subnet
https://github.com/XinFinOrg/XDC-Relayer
https://github.com/XinFinOrg/subnet-stats-service
https://github.com/XinFinOrg/XDC-Zero
https://github.com/XinFinOrg/XDC-CSC
https://github.com/XinFinOrg/xdc-subnet-docs
https://github.com/XinFinOrg/XinFin-Node/tree/master/subnet/deployment-generator

Subnet Troubleshooting Support Group

Wanwiset Peerapatanapokin — Mon, 26 Aug 2024 14:07:26 +0000

We have created a Subnet troubleshooting telegram group.
If you'd like a quick response to Subnet deployment or general Subnet issues, please feel free to join the link below.

https://t.me/+jvkX6LaLEEthZWM1

[Informative] Subnet v0.3.1 Minor Release and Development Roadmap

Wanwiset Peerapatanapokin — Wed, 24 Jul 2024 10:12:13 +0000

Before we get into the changes, I'd like to announce our plan for the next upcoming major Subnet release (v1.0.0). The timing should be around the same as XDPoSv2 switch. What is coming up in the next version and why is it major?

XDC-Zero deployment integration (Cross-chain framework)
Addition of Reverse side features (subnet > mainnet transfers)
Integration with XDCFoundation block explorer
Catchup Subnet-node code base with main chain including XDPoS2.0 auditing improvements
Documentation revamp with focus on first-time user experience

Change notes

Deployment Generator v0.2.2 > v0.3.1

https://github.com/XinFinOrg/XinFin-Node/releases

Use testnet by default
Remove admin api by default
Added PUBLIC_IP optional config in deployment-generator

Frontend v0.1.8 > v0.1.9

https://github.com/XinFinOrg/subnet-stats-service/releases

Allow configurable RPC in frontend service VITE_SUBNET_RPC which will use PUBLIC_IP. This makes it possible to use management feature from outside private network.
Change VITE_SUBNET_URL to use PUBLIC_IP if provided, so accessing from local browser can reach backend service
UI cleanup - typos, better wording, confirmation display

Subnet v0.2.1 > v0.2.2

https://github.com/XinFinOrg/XDC-Subnet/releases

Bump golang version to 1.21
fix-CVE-2023-40591

How to check out Subnet v0.3.1

Go to the deployment documentation page and follow the steps, new version is used by default.
https://xinfinorg.github.io/xdc-subnet-docs/deployment/launch_subnet/

How to upgrade existing Subnets

In docker-compose.yml, change bootnode and subnet version to xinfinorg/xdcsubnets:v0.2.2 then (refer commands.txt)
docker compose --env-file docker-compose.env --profile machine1 down
docker compose --env-file docker-compose.env --profile machine1 up -d
In common.env add VITE_SUBNET_RPC=http://subnet_node_ip:8545
In docker-compose.yml, change frontend version to xinfinorg/subnet-frontend:v0.1.9 then
docker compose --env-file docker-compose.env --profile services down frontend
docker compose --env-file docker-compose.env --profile services up -d frontend