# Credit Staking and XBTC Staking BTC holders can become BTC Validators on the exSat network by staking their #BTC through either [**Credit Staking**](/guides-of-data-consensus/others/operation-references/validator-operations/stake-for-validator-via-credit-staking.md) or [**XBTC Staking**](/guides-of-data-consensus/others/operation-references/validator-operations/stake-for-validator-via-xbtc-staking-or-xsat-staking.md). Each method has distinct features and benefits, as outlined below. *** ### **Credit Staking** Credit Staking allows BTC holders to retain self-custody of their #BTC on the Bitcoin network. By proving control over a specific BTC address and maintaining a locked balance of at least **100 #BTC**, users can qualify as BTC Validators. This method plays a key role in promoting decentralization and enhancing the security of the exSat network. However, it comes with certain limitations: * **Fixed Staking Amount:**\ Only two states are recognized: 0 #BTC or 100 #BTC. * If the BTC address balance falls below 100 #BTC, Credit Staking is deactivated and considered 0 #BTC. * If the balance is 100 #BTC or more, the staking amount is fixed at 100 #BTC—regardless of the actual balance (e.g., even with 1,000 #BTC, only 100 #BTC counts toward Credit Staking). * **No XBTC Minting:**\ BTC staked via Credit Staking does **not** generate XBTC, meaning it cannot be used in any on-chain yield-generating activities, such as quantitative strategies or restaking on the exSat chain. * **Lower XSAT Reward Weight:**\ Credit Staking typically earns a lower XSAT reward per BTC compared to XBTC Staking. * **Mandatory XSAT Donation:**\ A **20% portion** of the XSAT rewards earned through Credit Staking must be donated to the XSAT Foundation. *** ### **XBTC Staking** In contrast, XBTC Staking involves bridging BTC to the exSat network and minting XBTC, which can then be staked to become a BTC Validator. This approach offers several advantages: * **Secure Custody with Licensed Providers:**\ Bridged BTC is safeguarded by regulated custodians such as **Ceffu** ,**Standard Chartered Bank** and **Cactus**. For large holdings, assets are stored in **dedicated cold wallets**, and users can monitor their BTC to ensure full transparency and security. * **No Staking Limitations:**\ A minimum of **100 #XBTC** is required to become a BTC Validator, but there is no upper limit. The more #XBTC you stake, the more #XSAT rewards you earn. * **Participation in On-Chain CeDeFi Yields:**\ XBTC holders can access the full suite of CeDeFi opportunities on the exSat network—such as **quantitative strategies**, **restaking**, and other high-yield protocols—while simultaneously participating in consensus. * **Higher XSAT Reward Weight:**\ The reward weight per unit of XBTC is **higher** than that of BTC staked via Credit Staking, enabling greater XSAT earnings for the same notional amount. * **No Mandatory Donations:**\ XSAT rewards earned through XBTC Staking are **fully retained** by the staker—no contributions to the XSAT Foundation are required. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.exsat.network/guides-of-data-consensus/run-a-btc-validator/credit-staking-and-xbtc-staking.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.