Incentives and Staking Requirements
Mining and Staking Incentives: Like Bitcoin, the entire distribution of XSAT tokens is synchronized with the mining of new BTC blocks through a mining process. This ensures that anyone with the necessary computational resources can participate in the network and earn tokens, promoting a decentralized and egalitarian distribution mechanism. This method not only incentivizes participation but also enhances the security and decentralization of the network by dispersing token ownership widely among those contributing to the network’s operations.
Block Data Submission and Discovery Rewards: Synchronizers receive 10% of the block's token incentive for submitting verified BTC block data first. This reward increases to 50% if the synchronizer is also the miner of the BTC block. This incentive design aligns the interests of Bitcoin miners with the exSat network, encouraging contributions to both ecosystems.
Block Data Verification Rewards: Immediately after the network launch, the first 15 validators to verify signatures for each block will share 10% of the total XSAT generated in that period as the verification incentive. After the commencement of staking XSAT, only qualified validators among the top 21 stakers by XSAT amount will be eligible for these rewards.
BTC Staking Rewards: If the synchronizer, who is also a mining pool, does not discover a Bitcoin block, all participating validator nodes will share 80% of the total XSAT generated in that period based on their BTC staking ratio. If the synchronizer does discover a block, all participating nodes share 40% of the total XSAT generated. This approach ensures a fair and equitable distribution of rewards, recognizing the contributions of all network participants.
Validator Participation: Validators are required to stake a minimum of 100 BTC and XSAT, securing a significant financial commitment to the network’s security. To become a validator node, a participant must be among the top 21 stakers by the staked amount of XSAT.
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