1 00:00:14,230 --> 00:00:18,815 [HOST] Welcome to X1 Report, your source for the latest in blockchain news. Today, we're 2 00:00:18,815 --> 00:00:23,910 discussing a significant change announced by X1 Labs regarding their Foundation delegation 3 00:00:23,910 --> 00:00:24,363 program. 4 00:00:24,613 --> 00:00:31,235 [ANALYST] On October 19, Jack Levin, CEO of X1 Labs, posted an update on the X1 Validators chat, 5 00:00:31,235 --> 00:00:37,780 informing validators that the minimum stake required to receive Foundation delegation 6 00:00:37,780 --> 00:00:41,168 would increase from 5,000 XNT to 20,000 XNT. 7 00:00:41,418 --> 00:00:46,670 [HOST] This change is effective as of Tuesday, October 27, and marks the largest single step 8 00:00:46,670 --> 00:00:52,045 since Project Capybara started tying the floor to P85, the 85th percentile of validator 9 00:00:52,045 --> 00:00:52,725 self-stake. 10 00:00:52,975 --> 00:00:58,757 [ANALYST] According to Nick Pettas, a core developer at X1 Labs, the new floor will be set at the 11 00:00:58,757 --> 00:01:04,273 current P85 level, which is rounded down to an even 20,000 XNT. This change applies 12 00:01:04,273 --> 00:01:07,396 specifically to the Foundation delegation pool. 13 00:01:07,646 --> 00:01:14,043 [HOST] As of October 20, at epoch 416, the Foundation delegation program's public API listed 488 14 00:01:14,043 --> 00:01:20,441 validators. The median validator has 10,039 XNT of its own stake, and only 112 validators 15 00:01:20,441 --> 00:01:23,603 currently meet the new 20,000 XNT threshold. 16 00:01:23,853 --> 00:01:29,557 [ANALYST] The change is expected to significantly reduce the number of validators receiving 17 00:01:29,557 --> 00:01:35,894 delegation from 457 to just 112. This could lead to a more centralized network if the pool 18 00:01:35,894 --> 00:01:37,443 size remains constant. 19 00:01:37,693 --> 00:01:42,021 [HOST] Operators who run several nodes will have to consolidate their self-stake into fewer 20 00:01:42,021 --> 00:01:45,629 machines, potentially leading to a more centralized network structure. 21 00:01:45,879 --> 00:01:51,479 [ANALYST] However, the stake required is only about $3,500 at current XNT prices, which is 22 00:01:51,479 --> 00:01:57,219 relatively modest for a business that already pays a monthly server bill. The real 23 00:01:57,219 --> 00:02:01,559 commitment is in the thousands of dollars, not the XNT itself. 24 00:02:01,809 --> 00:02:06,505 [HOST] X1 Labs has not announced how the delegation from validators below the new threshold will 25 00:02:06,505 --> 00:02:11,253 be shared out. If the pool size remains the same, the remaining stake would be distributed 26 00:02:11,253 --> 00:02:14,630 among fewer validators, potentially increasing their delegation. 27 00:02:14,880 --> 00:02:20,679 [ANALYST] The validator set is still growing, and X1 Labs has not yet been listed on major platforms 28 00:02:20,679 --> 00:02:26,350 like CoinGecko or DEX Screener. This means there is still a chance for new validators to 29 00:02:26,350 --> 00:02:27,445 join the network. 30 00:02:27,695 --> 00:02:32,177 [HOST] Additionally, the first investor unlock arrived on October 6, but there has been no 31 00:02:32,177 --> 00:02:36,875 significant movement in stake since then. This suggests that big investors have not yet 32 00:02:36,875 --> 00:02:38,981 claimed their tokens or delegated them. 33 00:02:39,231 --> 00:02:44,200 [ANALYST] With the new floor in place, validators will need to differentiate themselves by offering 34 00:02:44,200 --> 00:02:48,722 fair commissions, steady uptime, and clear communication. The official delegation 35 00:02:48,722 --> 00:02:51,625 dashboard can help operators check where they stand. 36 00:02:51,875 --> 00:02:57,083 [HOST] Looking ahead, October 27 marks the implementation of the new Foundation delegation floor, 37 00:02:57,083 --> 00:03:02,290 followed by the end of the Bootstrap Bonus on November 1, and the first vesting release on 38 00:03:02,290 --> 00:03:02,926 November 6. 39 00:03:03,176 --> 00:03:08,493 [ANALYST] This is a pivotal moment for validators to stand out and attract stake from both investors 40 00:03:08,493 --> 00:03:13,515 and holders. The network is still early in its growth, offering opportunities for new 41 00:03:13,515 --> 00:03:15,464 operators to join and contribute. 42 00:03:15,714 --> 00:03:20,493 [HOST] That's all for today's report. Stay tuned for more updates on the blockchain landscape. 43 00:03:20,493 --> 00:03:22,306 This has been X1 Report. Goodbye.