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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 .


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:

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


Reference Table

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

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.

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.

  • =
    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.

  • 18,000 XNT

    2B

    40,000 XNT

    4,000 XNT

    36,000 XNT

    5B

    100,000 XNT

    10,000 XNT

    90,000 XNT

    100M

    2,000 XNT

    200 XNT

    1,800 XNT

    500M

    10,000 XNT

    1,000 XNT

    9,000 XNT

    1B

    20,000 XNT

    X1 Validator Dashboard

    2,000 XNT

    Bootstrap Bonus

    Bootstrap Bonus v1 rewards early, performant, and decentralized validators who actively strengthen the X1 network. It accelerates validator growth and decentralization across the consensus layer.

    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 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.


    Reward Structure

    • Base Reward: Distributed proportionally based on credits earned.

    • Performance Bonus: An additional +16 % awarded to validators who meet all Bootstrap Criteria.


    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 % 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.


    2. Performance Criteria (Operational Standards)

    To qualify for the Bootstrap Bonus, validators must maintain the following baseline performance defined in the :

    Metric
    Requirement
    Description

    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.


    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.


    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


    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:

    In short: Validating becomes the first DeFi of X1.


    Activation

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

    Tachyon Version

    ≥ v2.2.17

    Must run the latest compatible version of Tachyon.

    Strengthen the resilience and quality of the validator set

  • Lay the foundation for future Bootstrap Bonus v2 incentives

  • 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

    Delegation Program
    Stake, Performance, and Randomness-Based Leader Selection

    Validators with excessive missed votes are disqualified.

    Validator rewards

    The various ways to make rewards as a validator on X1

    • Voting rewards from inflation

    • Commission from delegators

    • Block rewards from block production

    • Bootstrap bonus

    X1 Validator Financials

    Voting rewards from inflation

    In the X1 consensus mechanism, validators cast votes on blocks proposed by the leader. Throughout each epoch, validators accumulate credits for their votes, which can be exchanged for a portion of the epoch's inflation rewards. The inflation rewards are allocated based on the number of credits each validator earns during the epoch; a validator's percentage of the total credits determines their share of the inflation rewards. This share is then adjusted according to the validator's stake relative to the total staked amount.

    X1 also features a predefined inflation schedule. It begins at 8% and decreases annually by 15%, aiming for a long-term inflation rate of 1.5%.

    Commission from delegators

    X1 operates on a delegated proof-of-stake (dPoS) blockchain system. Holders of XNT can delegate their coins to a validator, increasing that validator's staking weight. This not only enhances the validator's potential rewards from inflation through increased voting power but also boosts their chances of being selected as the leader to earn block rewards. Validators set their own commission rates, typically around 10%, which they deduct from the inflationary voting rewards; the remaining rewards are distributed to the stakers.

    Block rewards from block production

    Transaction fees on the network are awarded to the leader who successfully produces a block. High-performing nodes have a greater chance of being selected as the leader. RPC forwards transactions to the leader for execution. If the leader manages to produce a block that is confirmed by over two-thirds (67%) of the validator cluster, weighted by stake and performance(with ACP on the roadmap), they receive the block rewards, which consist of the transaction fees paid by the network's users for that block.

    Bootstrap bonus

    To support the growth of the network's infrastructure, validators receive additional incentives through a bootstrap program. Eligibility for the bootstrap bonus requires meeting specific criteria. The distribution of the bootstrap bonus for each epoch is determined by a validator's score, which is based on a credit system.

    Validator costs

    The only direct cost for validators is the hardware expense, which varies depending on the server supplier. To learn more, please read about the hardware requirements for the X1 blockchain.

    A major differentiator from Solana is that validators on the X1 Blockchain don't pay for votes. This significantly lowers the barriers to starting and maintaining a validator. Read more about zero-cost votes.