Mining Pools and Validators

BTC Mining Pools as Synchronizers to Sync the Raw Block Data from BTC to exSat

Mining Pools, who are qualified to submit block headers and block data to the docking layer, can act as a synchronizer node.

Since the docking layer smart contract performs block verification, invalid blocks are simply rejected. A reward mechanism exists to incentivize data submission.

BTC Staking to be Validator Nodes to Verify the Data Provided by Synchronizers

Validators contribute trust and security to exSat, they will check and validate the data provided by synchronizers separately and use a PoS model to achieve consensus to the data. Staking of BTC and XSAT tokens is required to be qualified as validators, thereby aligning their interests with the network’s security and reliability.

Staking 100+ BTC to Qualify as a Validator Node

• To become a validator node, a node must stake a minimum of 100 BTC. Only the top 21 nodes in terms of BTC staked will be eligible to serve as validator nodes until XSAT staking begins roughly 6 months after network launch. This requirement ensures that validator nodes have a significant financial commitment to the network, promoting security and reducing the risk of malicious behavior.

Earning Revenue Rights through XSAT Staking

• In addition to staking BTC, nodes must also stake XSAT tokens to earn revenue rights. Only the top 21 nodes in terms of staked XSAT will be entitled to receive revenue. The revenue distribution among these nodes will be proportional to their BTC staking ratio. This mechanism incentivizes nodes to actively participate in the network and maintain a significant stake in XSAT.

Commision Fee

• Validator nodes have the flexibility to configure their desired commision fee percentage, which determines their share of the revenue.

After Synchronizer and Validators’ work, Bitcoin block data is onto exSat and gets consensus on exSat, this brings trustworthy data for all other works.