# Incentivized Testnet Rewards

> **💡 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](https://x1val.online/).

***

## 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

<figure><img src="/files/4BOTYAg6nwdlTM1Prsrb" alt=""><figcaption></figcaption></figure>

***

## 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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