It is expected that at the end of March, ChainX will complete the Bitcoin Taproot upgrade, and then the custodian will be replaced. ChainX trusts can use the ComingChat threshold wallet for multi-signature to process users’ withdrawal requests, which greatly simplifies the custodian’s work and further enhances security. This is a huge innovation for Bitcoin cross-chain projects in the entire crypto world.
1. The work of ChainX custodians
The essence of the Bitcoin cross-chain deposit process is that the user transfers the Bitcoin to the Bitcoin hot address jointly managed by the custodians, and the user’s ChainX address will receive the same amount of mirror asset XBTC.
When a user initiates a withdrawal request, the ChainX Trusts(custodians) need to perform multi-signature, verify the request, and then return the Bitcoin to the user.
The specific work content is:
(1) When the user initiates a bitcoin withdrawal request, the custodians use the ComingChat threshold wallet to perform multi-signature and transfer the bitcoin to the user.
(2) When the Bitcoin in the trust hot address reaches a certain amount, the custodians use the ComingChat threshold wallet to perform multi-signature to transfer the Bitcoin in the hot address to another ComingChat cold address. When the number of bitcoins in the hot address is less than a certain amount, the custodians also use the ComingChat threshold wallet to perform multi-signature to transfer the bitcoins from the cold address to the hot address.
2. Description of ChainX Custodian Election Mechanism
All those who want to become a trust(custodian) can choose to stake 10 PCX to become a trust candidate. After becoming a candidate, community members (including the candidates themselves) can stake PCX to vote on candidates. Rank from high to low by votes and choose the top 18. Among them, 1 to 11 were directly elected as ChainX councilors, and 12 to 18 became runners up.
The top 10 of the 11 MPs will serve as trusts(custodians). One member of the trusts will act as the trust administrator, responsible for checking user’s withdrawal requests and initiating multi-signature transfers.
Beginning with the next term, ChainX will disqualify trusts that were negative in the previous term (e.g. a trust is lazy and rarely or never participates in multisig), and a corresponding number of candidates will then be selected from the seven runners up to take over the trust.
3. Custodian Rewards
5% of the monthly treasury income, that is, each trust can get about 600PCX per month. In addition, the users’ BTC withdrawal fee will be used as an additional income for the custodians. For those trusts that do not qualify for work, i.e. do not multi-sign as required, their awards will be cancelled.
4. Requirements for participating in a trust
(1) Have a certain amount of PCX to be a candidate and vote for yourself. The outcome of the election depends on the amount of PCX you use to vote for yourself.Based on the amount of PCX staked by the current custodians, we can estimate that you need at least a few thousand PCX assets to be successful in the election.
(2) Have blockchain knowledge and understand the process of asset cross-chain.
(3) Since the work of the trust will be carried out in ComingChat, you need to be familiar with the operation of the ComingChat threshold wallet.
(4) Have enough time to participate in the multi-signature work.
5. How to get involved
If you want to become a ChainX custodian and have at least a few thousand PCX, you can add a contact Mystic in ComingChat, the CID is 40. Mystic will inform you of the specific entry page and operation.But don’t bother if you don’t have enough PCX.