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This Castle is where all the Monsters go to sleep at night. Each type of Monster needs a different number of beds. Keep upgrading so you can have more Monsters on your Island!
The Castle in Dawn of Fire is a structure that is found at the center of the Continent. The single castle caters for all of the monsters over the entire continent. The Castle determines how many monsters can be placed on Continent by number of beds. Castle upgrades are purchased with coins, with each upgrade having a higher coin requirement. As the Castle upgraded, more beds are added. There are 7 levels to upgrade the Castle.
As of Version 1.8.0, you can purchase a second Castle that starts off at Level 1, purchasable for 800.
Strangly enough, despite being used in promotional art, the 'Level 8 Castle' is never used in game as of 1.8.0.
The outer islands have no castles. Thus, they have infinite beds.
Prior to the 1.4.0 update, the highest castle level was level 6, which did not have enough beds required to hold one of each monster (54 bed capacity). At the time, this would have required 67 beds. The Level 7 Castle ensured enough beds from Version 1.4.0 to Version 1.5.1.
The Level 7 Castle used to provide enough beds for one of every single monster, but this was not true in Version 1.6.0 to Version 1.7.0. At the time of Version 1.6.0, 83 beds would've been required.
In Version 1.8.0, there were enough beds to hold one of each monster in the game, though it is super expensive to eventually get there. A second castle can be bought since that update.
Upgrading the Castle to Level 3 increases the number of monsters with "blue notes" (from Monster Bonus) from 1 to 2. Similarly upgrading the Castle to Level 4 increases the number of monsters with "blue notes" (from Monster Bonus) from 2 to 3.
As of Version 1.8.0, all castle upgrades require coins, not crystals. At the same update, there was an increase in the number of upgrades to the max level of Level 10 (formerly Level 7). Former Crystals costs and castle upgrade bed occupations are below: