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.

  1. Conversion to XNT

    • 1B credits ÷ 50,000 = 20,000 XNT

  2. Distribution Breakdown

    • 10% immediately claimable = 2,000 XNT

    • 90% locked & vested over 365 days = 18,000 XNT

  3. 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

Validator Credits
XNT Equivalent
10% Claimable at Genesis
90% Vested Over 365 Days

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.

Last updated