Incentivized Testnet Rewards
How validators are rewarded for their participation in the X1 testnet.
💡 TL;DR
Credits → XNT: 50,000 credits = 1 XNT
Immediate (10%): Claimable at genesis, stake right away
Vested (90%): Locked for 365 days, proportional unlock based on uptime + performance
Example: 1B credits = 20,000 XNT → 2,000 claimable + 18,000 vested
Goal: Fair rewards + immediate decentralization of the consensus layer at mainnet
The X1 incentivized testnet is designed to both reward validators for their participation and bootstrap decentralization at mainnet launch. By running validators, producing blocks, and voting on leader output, participants earn Validator Credits. These credits directly determine each validator’s allocation of XNT once X1 mainnet goes live.
How Validator Credits Work
Every time a validator votes on a block, they accumulate credits.
Credits reflect the validator’s uptime, participation, and consistency during the testnet.
At mainnet launch, credits are converted to XNT according to a fixed conversion ratio:
50,000 Credits = 1 XNT
For monitoring validator performance and accumulated credits, check X1 Validator Dashboard.
XNT Distribution at Mainnet
Validators’ earned XNT will be distributed in two phases:
1. Immediate Claimable Allocation (10%)
10% of earned XNT will be claimable at genesis.
Validators will be airdropped a small amount of XNT to cover gas for claiming.
This allocation enables validators to stake into their own node immediately, ensuring that X1 launches with strong decentralization for the consensus layer.
2. Locked & Vested Allocation (90%)
The remaining 90% of earned XNT will be subject to a 365-day lock with vesting.
To unlock the full allocation, validators must maintain their validator identity for the entire 1-year period.
If a validator goes offline earlier, they unlock only a proportional share of the 90%. For example:
Running for 1 month = ~1/12 of the vested portion.
Running for the full 12 months = 100% of the vested portion.
Unlock timing: Regardless of participation length, vested tokens unlock only after 365 days from mainnet launch.
Unvested tokens are deposited into the X1 Stake Pool Delegation Program, where they continue to earn staking rewards over time.
Performance will also be factored into vesting eligibility. Validators with poor performance (low uptime, missed votes, or other criteria to be defined) will not receive their full rewards.
A dedicated Vesting Dashboard will allow validators to track their progress and vesting status over time.
Numerical Example
Let’s assume a validator has accumulated 1,000,000,000 (1B) credits during the testnet.
Conversion to XNT
1B credits ÷ 50,000 = 20,000 XNT
Distribution Breakdown
10% immediately claimable = 2,000 XNT
90% locked & vested over 365 days = 18,000 XNT
Vesting Scenarios
Validator stays online for 3 months → unlocks ~4,500 XNT (¼ of the 18,000).
Validator stays online for full 12 months → unlocks all 18,000 XNT.
Unlock happens after 365 days, regardless of partial or full participation.
Important: Vesting is based on active validator uptime within the 365-day window.
Example: 6 months online → 3 months offline → 6 months online = ¾ unlocked, not 100%.
All locked tokens are forfeited after 365 days.
Reference Table
100M
2,000 XNT
200 XNT
1,800 XNT
500M
10,000 XNT
1,000 XNT
9,000 XNT
1B
20,000 XNT
2,000 XNT
18,000 XNT
2B
40,000 XNT
4,000 XNT
36,000 XNT
5B
100,000 XNT
10,000 XNT
90,000 XNT
Why This Matters
This model ensures that:
Rewards are fairly distributed based on actual testnet participation.
Validators are incentivized to secure the chain long-term.
X1 achieves immediate and sustainable decentralization for the consensus layer from day one.
Flow Diagram

Disclaimer
All details outlined above are subject to change. The X1 team may adjust reward mechanics, ratios, performance criteria, or vesting structures prior to mainnet launch.
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