> For the complete documentation index, see [llms.txt](https://bitcoin-everlight.gitbook.io/bitcoin-everlight-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bitcoin-everlight.gitbook.io/bitcoin-everlight-docs/developer-updates/developer-update-6-shard-runtime-lifecycle-engine-and-native-btc-reward-settlement-layer.md). # Developer Update #6 - Shard Runtime Lifecycle Engine & Native BTC Reward Settlement Layer {% hint style="success" %} **Status:** Live - Version 1.91 {% endhint %} Following the successful **V2 migration framework** and the finalized **Shard Activation Architecture**, this update introduces the **runtime execution model** that governs how Everlight shards operate within the live network. **Developer Update 6 defines the systems responsible for:** * Shard lifecycle management * Runtime routing allocation * performance-weighted validation * native BTC reward settlement * Everlight App control-plane orchestration These components transform Everlight shards from **presale activation units** into **active routing validators participating in Bitcoin transaction flow.** *** ## Architectural Overview The Everlight runtime layer consists of three coordinated subsystems. ``` Everlight Runtime Layer Shard Lifecycle Engine │ ▼ Routing Performance Engine │ ▼ BTC Reward Settlement Pipeline │ ▼ Everlight App Control Plane ``` Each subsystem performs a distinct role in the operational network. *** ## 1. Shard Runtime Lifecycle Engine Once activated, shards transition through a deterministic lifecycle managed by the Everlight control plane. The lifecycle ensures that shards move from **activation eligibility** to **routing participation** to **BTC reward settlement**. #### Lifecycle State Model ```python enum ShardState { DORMANT, ACTIVATION_PENDING, ACTIVE, PERFORMANCE_WEIGHTED, REWARD_ELIGIBLE, INACTIVE } ``` *** ### State Descriptions #### Dormant The shard exists but has not reached activation requirements. Example: ``` if contribution < ACTIVATION_THRESHOLD: shard.state = DORMANT ``` Dormant shards maintain eligibility but do not participate in routing. *** #### Activation Pending Triggered when the shard crosses the activation threshold. ``` if contribution >= ACTIVATION_THRESHOLD: shard.state = ACTIVATION_PENDING registerShard(shardID, walletAddress) ``` Activation validation includes: * wallet ownership verification * shard registration * validation pool mapping *** #### Active Once activated, shards begin participating in routing and validation. ``` function activateShard(shardID): nodePool.assign(shardID) shard.state = ACTIVE ``` Active shards contribute to: * transaction routing * availability quorum * relay validation Importantly, Everlight **does not modify Bitcoin consensus**.\ Nodes operate as a **routing and validation layer parallel to the base chain**. *** #### Performance Weighted Active shards are continuously evaluated using performance metrics. ``` score = ( uptimeScore * 0.40 + latencyScore * 0.20 + routingSuccess * 0.20 + reliabilityScore * 0.20 ) ``` These metrics determine routing allocation priority. Higher scores increase routing volume and reward weighting. *** #### Reward Eligible Once routing activity is verified, the shard becomes eligible for reward settlement. ``` if shard.performanceScore >= MIN_SCORE: shard.state = REWARD_ELIGIBLE ``` Eligibility triggers participation in the **BTC settlement pipeline**. *** #### Inactive Shards may temporarily lose routing priority if performance drops. ``` if uptime < threshold: shard.state = INACTIVE ``` Inactive shards remain registered but receive reduced routing allocation. *** ## 2. Routing Performance Engine The routing engine dynamically distributes transaction traffic across active shards. Instead of static assignment, Everlight uses **adaptive routing allocation** based on shard performance. *** ### Routing Allocation Algorithm ``` function allocateRouting(transaction): shardScores = getActiveShardScores() selectedShard = weightedRandom(shardScores) routeTransaction(transaction, selectedShard) ``` Routing weight is derived from performance scoring. *** ### Performance Metrics ``` metrics = { "uptime": 0.40, "latency": 0.20, "success_rate": 0.20, "historical_reliability": 0.20 } ``` Each shard continuously reports operational metrics. The control plane updates routing weights in near-real time. *** ## 3. Quorum Validation Layer Transactions routed through Everlight undergo quorum validation. Rather than full network consensus, a subset of nodes confirms transaction relay integrity. *** ### Quorum Structure ``` QUORUM_SIZE = 5 REQUIRED_CONFIRMATIONS = 3 ``` Validation flow: ``` function validateTransaction(tx): quorum = selectNodes(QUORUM_SIZE) confirmations = collectConfirmations(tx, quorum) if confirmations >= REQUIRED_CONFIRMATIONS: return VALID ``` This architecture allows: * rapid transaction relay * reduced computational load * high availability Transactions may optionally anchor to Bitcoin for final verification. *** ## 4. Native BTC Reward Settlement Pipeline Routing activity produces micro-fee revenue which is distributed as **native BTC rewards**. *** ### Reward Pipeline ``` Transaction Routing │ ▼ Routing Micro-Fee Collection │ ▼ Performance Weight Calculation │ ▼ Shard Reward Allocation │ ▼ Native BTC Distribution ``` *** ### Settlement Logic ``` function calculateRewards(shard): routingFees = getRoutingFees(shard) performanceMultiplier = shard.performanceScore reward = routingFees * performanceMultiplier return reward ``` Rewards accumulate until the next distribution epoch. *** ### BTC Distribution ``` function distributeBTC(): for shard in rewardEligibleShards: payoutBTC(shard.wallet, shard.rewardBalance) ``` Settlement occurs in periodic reward epochs. *** ## 5. Everlight App Control Plane The Everlight App acts as the **network control interface** for shard operators. It coordinates: * shard activation * routing participation * reward monitoring * network analytics *** ### Control Plane Functions ``` class EverlightControlPlane: def connectWallet(self, wallet): authenticate(wallet) def activateShard(self, wallet): registerShard(wallet) def trackRewards(self, shardID): return rewardLedger[shardID] def viewMetrics(self, shardID): return performanceStats[shardID] ``` *** ### Dashboard Data Streams Users can monitor: ``` Active Shards BTCL Presale Accrual Native BTC Rewards Routing Performance Metrics Leaderboard Rankings Network Activity ``` These metrics update continuously from the runtime layer. *** ## 6. Security & Network Safeguards Several mechanisms ensure network integrity. *** ### Node Health Monitoring ``` function monitorNode(node): if node.heartbeatMissing(): reduceRoutingWeight(node) ``` *** ### Routing Verification Transactions must pass quorum validation before routing completion. *** ### Audit & Contract Verification Core infrastructure and smart contracts have undergone independent review. *** ## 7. Network Scalability Model Everlight scales horizontally as shards activate. Each new shard increases: ``` routing capacity network redundancy transaction throughput validation coverage ``` Routing allocation dynamically adjusts to the available shard pool. *** ## 8. Next Development Phase The upcoming development phase will introduce several advanced capabilities. *** #### Dynamic Routing Markets Routing fees will adjust automatically based on network demand. *** #### Adaptive Incentive Layer Performance weighting will adapt to network congestion and throughput. *** #### Advanced Analytics Engine The Everlight App will include deeper analytics for node performance and routing activity. *** ## Summary Developer Update 6 introduces the runtime systems that enable Everlight shards to operate as an active network routing layer. Key components include: ``` Shard lifecycle management performance-weighted routing quorum-based validation native BTC reward settlement Everlight App control plane ``` Together these systems transform shard activation into a fully operational infrastructure layer that supports Bitcoin transaction routing while distributing native BTC rewards to network participants.