Node Holder Rewards form the first and most protected layer of the infrastructure reward allocation. Each epoch, 10% of the total MNTx reward pool is set aside exclusively for node holders. This portion is entirely separate from the 60% staker pool and is not subject to the algorithmic burn. Whatever is allocated here reaches node holders in full, with no reduction applied.

This distinction matters. The 60% staker pool fluctuates based on the burn calculation, which is determined each epoch by the proportion of circulating MNTx that remains unstaked. The 10% node holder allocation carries no such variable. It is a fixed, undiluted share of every epoch's reward pool, distributed on a per-node basis regardless of how much MNTx is staked above the minimum threshold.

Allocation per Node

Node Type	Reward Share per Node
Switch Node	0.01% of total reward pool
Validation Node	0.002% of total reward pool

These percentages are fixed and apply uniformly across all 3,000 nodes. A Switch Node operator receives the same 0.01% whether they have staked the minimum 50,000 MNTx or significantly more. Node Holder Rewards are not proportional to stake size. They reward node ownership and continuous operation, not the scale of the staking position.

Eligibility

Node Holder Rewards are attributable to all 3,000 nodes but are only paid out under a specific condition: the node must have been staked by a single owner for the entirety of the epoch. Partial-epoch staking does not qualify. If a node is unstaked at any point during the epoch, or if ownership changes mid-epoch, that node's allocation is not redistributed to other participants. It is permanently burned.

This eligibility condition reinforces two principles that run throughout the network's design. First, it rewards consistent, long-term infrastructure commitment over opportunistic participation. Second, it creates a direct burn mechanism tied to infrastructure behaviour: every node that fails to maintain continuous single-owner staking across a full epoch removes tokens from the supply rather than allowing them to flow elsewhere.

For node operators, the implication is straightforward. Maintaining an uninterrupted staking position across each full epoch is the condition for receiving this allocation. Operators who meet that condition receive their node holder share from every epoch's reward pool, on top of whatever they earn from the 60% staker distribution based on their proportional stake.