After listing XDC at the major Japanese crypto-exchange, SBI VC Trade, XDC token and XDC Network expand awareness and its transactions in the Japanese market. In this market situation, SBI VC Trade increases their active master nodes in order to respond to growing demand on XDC and the staking reward service. However, SBI VC Trade faces trouble with increasing their master nodes owing to the number of limitations of the 350 master nodes. The following is SBI VC Trade’s comments and opinions. Then, I explain the background of this situation. Finally, I would like to make a proposal to the community to solve this situation.
Opinion and proposal from SBI VC Trade
Dear the XDC community members,
As for staking XDC, we have already staked 33 nodes. We are currently implementing marketing measures, and it is expected that the XDC deposits will increase further in the future. If we suddenly become unable to stake any more, we will not be able to provide the services we advertised, and we will be in great trouble.
In the future, we intend to focus our efforts on improving the XDC service. XDC staking is essential to us.
Here we propose to remove the current cap of 350 masternode. We understand that removing the upper limit on the number of nodes may raise concerns about inflation, but we would like to discuss that separately.
Xiong Long Bao,
Operation Dept., General Manager
SBI VC Trade
According to the whitepaper, the limitation of the number of master nodes is 350 which is 108 core masternode and 242 standby masternode. As of 25 August 2023, the active master nodes are 319. Obviously, it will hit a limit within a couple of months.
It is quite crucial for the crypto-asset exchanges that provide the customers with the staking reward service to increase the active master nodes.
SBI VC Trade, which is the Japanese crypto-asset exchange concluding the business partnership agreement with XDC Network, is one of the Japanese exchanges that provide with their staking reward service. SBI VC Trade currently runs 33 master nodes. On the other hand, they need to increase the number of their active master nodes due to the continuously growing transactions of XDC and maintaining their staking reward service.
SBI VC Trade also plans to develop use cases using XDC network blockchain with SBI Group firms and the group’s global network. They are concerned about losing such opportunities owing to hitting the limit of the master nodes.
In addition to SBI VC Trade, a couple of the Japanese crypto-asset exchanges contacted me and told me that they would like to deal with XDC. It is highly likely that those exchanges would provide their staking reward services as well. It would result in increasing the demand on the active master nodes.
Further, XDC Trade Network made a partnership agreement with Inforcomm Media Development Authority Singapore (IMDA), which would accelerate digitization of trade finance and related things. It would result in significant growth of transaction volume on our network. Therefore, we, XDC Network need to prepare for such expanding transactions as well as increasing demands on the active master nodes.
Due to the fact that the number of the active master nodes will hit a limit, 350 nodes, we need to revise the limitation as soon as possible.
I would like to propose to organize a community vote in order to judge the revision of the limitation from 350 to 508 masternodes which will be 108 coremasternode + 400 standby masternode to implement as soon as possible.