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:
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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