# Bootstrap Bonus

**Bootstrap Bonus** rewards early, performant, and decentralized validators who actively strengthen the X1 network.\
The purpose of the Bootstrap Bonus is to **accelerate the growth of the validator network** and **enhance decentralization** across the consensus layer.

It complements the [Incentivized Testnet Rewards](https://docs.x1.xyz/validating/incentivized-testnet-rewards) and distributes **additional rewards** based on validator **credits** and **self-stake performance**.

This program will remain active **until further notice**, after which it may evolve into **Bootstrap Bonus v2** with updated parameters and incentive structures.

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## Reward Structure

* **Base Reward:** Distributed proportionally based on **credits earned**.
* **Performance Bonus:** An **additional +16 %** awarded to validators who meet all **Bootstrap Criteria**.

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## Bootstrap Criteria

### 1. Self-Stake Range

Bootstrap Bonus v1 is **based solely on self-stake** (delegated stake does not count).\
To maintain decentralization and fair participation:

* **Minimum self-stake:** 1 000 XNT
* **Maximum rewarded self-stake:** 10 000 XNT
* Validators may self-stake more than 10 000 XNT, but **only the first 10 000 XNT** will be eligible for the +16% APY performance bonus.

> **Example:**\
> A validator with **1 000 XNT** self-stake qualifies fully.\
> A validator with **12 000 XNT** self-stake will receive the bonus **only on the first 10 000 XNT**, while the remaining 2 000 XNT will not earn additional rewards.

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### 2. Performance Criteria (Operational Standards)

To qualify for the Bootstrap Bonus, validators must maintain the following **baseline performance** defined in the [Delegation Program](https://delegation.mainnet.x1.xyz):

| Metric               | Requirement                   | Description                                              |
| -------------------- | ----------------------------- | -------------------------------------------------------- |
| **Active Validator** | Required                      | Must be part of the active validator set.                |
| **Max Commission**   | 10 %                          | Commission must not exceed 10 %.                         |
| **Vote Credits**     | ≥ 97 % of network average     | Demonstrates consistent performance and uptime.          |
| **Skip Rate**        | ≤ 10 % above network average  | Validators with excessive missed votes are disqualified. |
| **Tachyon Version**  | dynamic majority-version rule | Must run the version held by >50% of network stake.      |

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### 3. Validator Ownership & Conduct

* Each individual or entity may operate a maximum of **10 validators**.
* Running more than 10 validators, or attempting to **split identity (Sybil)** or **circumvent this limit**, results in **disqualification** from the program.
* Validators must adhere to the **spirit of decentralization** and act in good faith.\
  Any manipulation or gaming of the system will lead to **immediate removal**.

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## Dynamic Parameters

Bootstrap Bonus v1 is a **dynamic system**.\
The X1 Foundation may **adjust thresholds, bonus rates, or eligibility parameters** at any time to maintain fairness, performance, and decentralization.\
Future updates will be released as **Bootstrap Bonus v2**, introducing new metrics and incentive structures as the validator ecosystem matures.

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## Program Purpose

Bootstrap Bonus v1 is designed to:

* **Accelerate the growth** of the validator network
* **Encourage self-commitment** and fair participation
* **Enhance decentralization** of the consensus layer
* Reward **high-performing, independent operators**
* Strengthen the **resilience and quality** of the validator set
* Lay the foundation for future **Bootstrap Bonus v2** incentives

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## DeFi Origin of X1

The first DeFi protocol of X1 is **not** a DEX or a lending market — it is the **Bootstrap Bonus**.\
By making **validation itself** the first **yield-bearing activity**, X1 aligns incentives directly with the **security** and **decentralization** of the chain.

This is what truly sets X1 apart from most other blockchains — the ambition to let **everyone participate at the core of the network**, not just at the edge.\
Validators on X1 can **participate in consensus with minimal barriers** and also **participate in block production** itself.

In alignment with this vision, X1 introduces the **democratization of block production**, where **randomness and validator performance** define eligibility — not stake dominance.\
Learn more: [Stake, Performance, and Randomness-Based Leader Selection](https://docs.x1.xyz/technicals/technical-roadmap/stake-performance-and-randomness-based-leader-selection)

In short:\
**Validating becomes the first DeFi of X1.**

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### Activation

The **Bootstrap Bonus** will initiate **after X1 completes its initial launch configuration and key operations**.