> For the complete documentation index, see [llms.txt](https://docs.axiomprotocol.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.axiomprotocol.io/protocol-design/axiom-prime/staking-snapshots.md).

# Staking Snapshots

Every epoch (default: 24 hours), the system records each staker's USD-equivalent value:

```
stakeUSD = SUM(position_v * sharePrice_v * assetPriceUSD_v) for all GovernanceVaults
```

During the bootstrap phase, this simplifies to just the XRP vault position.

Snapshots are stored immutably and used for percentile calculations:

* Top 50% → eligible to create prediction markets, propose/challenge outcomes, and vote in initial resolutions.

Snapshots ensure deterministic eligibility and prevent stake-hopping manipulation.

#### Optimistic Snapshot Architecture

Axiom uses an optimistic off-chain computation model with on-chain fraud proofs to achieve major gas savings while maintaining decentralization.

{% stepper %}
{% step %}

### Normal Operation (99%+ of snapshots)

1. Off-chain indexer computes staker percentiles and builds a Merkle tree
2. Submitter posts Merkle root on-chain (\~251k gas) with economic bond (100-1000 XRP)
3. 24-hour challenge window allows anyone to dispute with fraud proof
4. If unchallenged, snapshot auto-finalizes
5. Users verify eligibility via cheap Merkle proofs (\~4k gas)
   {% endstep %}

{% step %}

### Fraud Proof (rare, economically deterred)

1. Challenger submits fraud proof with alternative Merkle root + bond
2. Contract computes percentiles on-chain (expensive! \~4M gas for 1000 stakers)
3. Compares roots: loser forfeits bond to winner (200 XRP total)
4. Economic deterrent: attacking costs $250-$2,500, defending is cheaper
   {% endstep %}

{% step %}

### Rollout Phases

1. Bootstrap (Months 0-12): Trusted signers post snapshots, no challenges (rapid iteration).
2. Challengeable (Months 12-18): Same signers, fraud proofs enabled.
3. Permissionless (Month 18+): Anyone can submit with 1000 XRP bond (full decentralization).
   {% endstep %}
   {% endstepper %}

Why this works:

* Cost efficiency: $3k-$15k/year vs $1.8M/year pure on-chain sorting.
* Decentralization: Anyone can submit/challenge with bonds ensuring honesty.
* Scalability: Off-chain computation supports millions of stakers.
* Security: Economic game theory makes attacks irrational.

#### Dual Epoch Locking: Creation vs Resolution

Axiom uses a two-epoch system to balance long-term market integrity with fresh voter participation:

* Creation Epoch: Locked when market is created, determines who can create markets.
* Resolution Epoch: Locked when the first proposal is submitted, determines who can submit proposals, vote, and receive penalties/rewards.

This prevents stake-hopping and ensures penalties/rewards apply to currently-staked participants.

Example Flow:

```
Day 1 (Epoch 100): Market created
- creationEpoch = 100
- resolutionEpoch = null

Day 90 (Epoch 190): First proposal submitted
- resolutionEpoch = 190 (LOCKED)
- Only Epoch 190 top 50% can submit proposals and vote
- Vaults enforce resolution lock on Epoch 190 participants

Day 91-93: Voting period
- Withdrawal blocked for all proposal submitters and voters
- Penalties/rewards apply to Epoch 190 stakes
```

Two snapshot mechanisms:

* Governance Snapshots (24-hour epochs): staker USD values for percentile-based eligibility.
* TVL Snapshots (hourly updates): track vault TVL for fee distribution.

Both operate independently.

#### Snapshot Automation

Snapshots are permissionless and trustless; any participant can trigger the snapshot function after an epoch duration has elapsed. Contracts fetch XRP/USD price from decentralized sources (BandChain oracle or XRP/USD-pegged stables DEX), calculate USD-equivalent positions, store data on-chain, and compute percentiles.

Epoch duration (default 24 hours) is governance-adjustable.


---

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