Requirements and rewards for BTC Validators
Requirements for $BTC Validator
$BTC Validators must stake a minimum of 100 $BTC to qualify as a BTC Validator. This initial 100 $BTC cannot be raised through delegated staking from the community.
Once a Validator becomes qualified, they are allowed to accept delegated staking from community members.
XSAT rewards received
If the Bitcoin block hash submitted by a BTC Validator matches the final exSat consensus, the Validator will receive the reward for that block.
BTC Validators receive 65% or 70% of the block rewards, depending on whether the Synchronizer receives current block rewards also mined the corresponding Bitcoin block:
If the Synchronizer mined the corresponding Bitcoin block, the BTC Validator receives 65% of the current block rewards.
Otherwise, the BTC Validator receives 70% of the current block rewards.
Reward Types:
BTC Validator rewards are divided into two categories:
Staking Rewards: These are rewards earned from staking BTC. The amount is proportional to the quantity of BTC staked. This portion of the reward is received by the EVM address that completed the staking process.
Commission: Community members who either do not meet the 100 BTC minimum or prefer not to run a Validator client can delegate their BTC to a BTC Validator to earn consensus rewards. In return, the BTC Validator may charge a commission on the delegated BTC. The Commission = Total Staking Rewards × Commission Rate, and the commission rate is determined by the BTC Validator. The commission is received by the Reward Address set by the Validator.
For BTC Validators using Credit Staking, the BTC staking occurs on the Bitcoin network, not on the exSat chain. As a result, there is no Stake Address on the exSat chain for the staking operation. Therefore, both the staking rewards and the commission earned are distributed to the Validator’s designated Reward Address.
Rewards distribution
XSAT rewards are distributed among BTC Validators proportionally based on the amount of BTC they have staked.
After receiving the rewards, a validator deduct its commission, and the remaining amount is distributed among all stakers proportionally based on their BTC stakes.
For example:
BTC Validators can receive 70% of the current block rewards, equivalent to 35 $XSAT.
If a Validator staked 10% of the total BTC staked, it receives 3.5 XSAT.
Assuming the Validator’s commission rate is 5%, and there are two stakers:
The Validator itself, staking 100 BTC.
A delegate staker from the community, staking 10 BTC.
The rewards are distributed as follows:
Commission: 3.5×5%=0.175 $XSAT, retained by the Validator and claimable through its Reward Account.
Validator's Stake Rewards: (3.5−0.175)×100/110 ≈ 3.0227 $XSAT, claimable by the staker address of the validator.
Delegate Staker's Rewards: (3.5−0.175)×10/110 ≈ 0.3023 $XSAT,claimable by the delegate staker.
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