# Nodes

In contrast, Nodes represent smaller entities, such as local gold shops, that participate in the Phoenix Gold Network with a more hands-on approach to gold transactions. To become a Node, a shop must have a slashable stake exceeding 20% of the value of the gold they are responsible for within the network. This requirement ensures that Nodes have a vested interest in the integrity and success of PGN. Nodes are pivotal in the day-to-day operations of the network, facilitating the redemption of Cyphers for physical gold, and providing liquidity and accessibility to gold investors at a more localized level.

Nodes receive PGC rewards and transaction fees as compensation for their participation and services. An added benefit for Nodes is the potential for increased profit margins. Given that the Phoenix Gold Spot price—PGN's internal valuation of gold—may exceed traditional gold spot prices, Nodes have the opportunity to sell gold within the network at these higher rates. This unique pricing mechanism allows Nodes to enjoy greater profitability, in addition to the rewards and fees earned through network participation.

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