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.

XSAT 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:

1. Commission: 3.5×5%=0.175 $XSAT, retained by the Validator and claimable through its Reward Account.

2. Validator's Stake Rewards: (3.5−0.175)×100/110 ≈ 3.0227 $XSAT, claimable by the staker address of the validator.

3. Delegate Staker's Rewards: (3.5−0.175)×10/110 ≈ 0.3023 $XSAT,claimable by the delegate staker.