BTC-Denominated Routing & Reward Model Update (v1.1)
This addendum formalizes the transition of Bitcoin Everlight’s routing fee and validator reward model to a Bitcoin-denominated structure.
The core architecture of Everlight — including lightweight transaction routing, quorum-based confirmation, and optional Bitcoin settlement anchoring — remains unchanged. This update affects only fee denomination and reward payout currency.
2. BTC Routing Fee Denomination
All transaction routing fees within the Everlight network are denominated and paid in Bitcoin (BTC).
Users submitting transactions through the Everlight layer pay a micro-fee in BTC for transaction routing and validation. These BTC fees are collected into a protocol-level routing pool.
3. Public BTC Routing Pool (Transparency)
Everlight maintains a publicly visible BTC routing pool address. This address receives BTC micro-fees generated by real network usage.
This structure enables independent verification of BTC inflows, ensuring that Shard rewards are derived from actual network activity rather than subsidized distributions.
4. Shard Reward Distribution
Activated Shards represent validator instances within the Everlight network.
Let:
WiW_iWi = weight of Shard i
WTW_TWT = total network weight
FBTCF_{BTC}FBTC = total BTC routing fees collected during a reward period
Then:
Ri=WiWT×FBTCR_i = \frac{W_i}{W_T} \times F_{BTC}Ri=WTWi×FBTC
Where:
RiR_iRi is the BTC reward allocated to Shard i.
Rewards are calculated over defined distribution periods and accrue to each Shard operator’s reward balance.
5. BTC Payout & Withdrawal Model
BTC rewards are distributed from the protocol-managed routing pool.
Shard operators may withdraw BTC from their accrued reward balance to their own BTC address through the Everlight interface. Withdrawals are processed from the routing pool wallet using transparent accounting tied to the reward distribution model above.
6. BTCL Utility Clarification
BTCL remains the validator bonding and activation token of the Everlight network.
To activate a Shard, users must lock a fixed amount of BTCL. BTCL is not used as a routing fee medium.
This creates a dual-layer economic structure:
BTCL → validator participation and weight determination
BTC → routing fee currency and reward distribution
7. Architectural Continuity
This update does not alter:
Everlight’s lightweight confirmation model
node quorum verification logic
optional settlement anchoring mechanism
network security assumptions
Everlight remains a lightweight Bitcoin transaction routing layer with validator incentives tied directly to BTC-denominated network usage.
