Client-side custody, cryptographic key protection and the path from mined SHARD to native LUXA · 9 min read
The Spider Vault and the mainnet migration framework are two of the foundational components of the LUXA Ecosystem. The first protects the cryptographic keys that give you control of your funds. The second defines how activity accumulated inside the Telegram Mini App is verified and settled on the native LUXA Network blockchain (Chain ID: luxa-1).
Together, they are built around three principles: client-side security, controlled identity verification, and resistance to large-scale Sybil activity.
The Spider Vault is a decentralized, non-custodial custody matrix integrated directly into the LUXA Telegram Mini App. It is designed around a zero-knowledge-oriented model: private secrets stay on the user's device rather than being sent to backend infrastructure or stored as plaintext database records.
Key generation, encryption, decryption and transaction signing all happen locally, inside the sandbox of the user's device — browser or mobile webview. This separates the blockchain interface from the sensitive cryptographic material that controls an account: the backend never needs access to your plaintext private key.
Each Telegram account can initialize and manage up to 10 independent vaults, each with its own native address in Bech32 format using the luxa1... prefix. Different blockchain identities can be kept independent from one another while remaining accessible from the same Mini App.
Encrypted private-key material is protected with PBKDF2 (Password-Based Key Derivation Function 2). Your locally chosen numerical PIN is combined with a cryptographically generated salt and run through a large number of HMAC-SHA256 iterations, making repeated PIN guesses computationally expensive compared to a simple hash comparison. The overall security depends on the iteration count, salt generation, PIN entropy and implementation.
The resulting encrypted key payload is protected with AES-256-GCM (Galois/Counter Mode), which provides both confidentiality and integrity. Alongside encryption, GCM produces an authentication tag — if the ciphertext is altered, tag verification fails and the payload is not decrypted.
The migration framework bridges activity accumulated inside the Mini App with settlement on the LUXA Network (luxa-1) Layer 1. Conceptually:
Mining activity → Shard accumulation
↓
Eligibility verification
↓
Identity / Sybil verification
↓
Migration settlement
↓
Native LUXA on LUXA Network (luxa-1)
The conversion rate is fixed by the protocol: 10,000 SHARD = 1 LUXA (the 10,000:1 Shard parity defined in White Paper v3.0). Eligible SHARD are burned at settlement and the equivalent native LUXA is issued on the LUXA Network (luxa-1). Settlement is processed once the three requirements below are met.
A participant must accumulate 60 validated mining days. Days count cumulatively; maintaining a continuous daily streak is only necessary to preserve the streak multiplier.
Migration to mainnet requires identity verification through Sumsub, including 3D liveness and document checks. The goal is to establish a one-person-to-one protocol identity relationship, making large-scale Sybil structures substantially harder to run.
Settlement executes when the network reaches 7,000,000 active pioneer nodes, so that distribution is broad before wider liquidity opens. Certified accounts wait in the verified queue until then. The 8% / 4% protocol withholding and network gas apply at settlement (see Section 5).
The 8% LUXA withholding is directed to the Operational Mining Vault:
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With the fixed conversion rate of 10,000 SHARD per 1 LUXA, let S be eligible SHARD, G gross LUXA, F the protocol fee, and N net LUXA after the fee and initial withdrawal gas. Initial LUXA withdrawals incur an 8% withholding and 0.001 LUXA in gas; SHARD withdrawals incur a 4% withholding and 0.0005 LUXA in gas. Subsequent native L1 transfers have near-zero network fees from 0.0002 LUXA (200 uluxa).
A participant with 100,000 eligible SHARD who has met the migration requirements receives:
Citizen Zero (#0) holds a protocol-level exemption from the standard 60-day mining requirement and Sumsub KYC. This exception does not waive the standard withholding or network gas.
LUXA separates two problems that are often treated as one:
A participant accumulates 60 validated mining days, completes Sumsub identity verification, and waits for the network to reach 7,000,000 active pioneer nodes. Daily continuity is needed only to preserve the streak multiplier. At settlement, SHARD convert at the fixed rate of 10,000 SHARD per LUXA, subject to the standard withholding and applicable network gas. Citizen Zero (#0) is exempt from the 60-day and KYC requirements, but not from withholding or gas. The Spider Vault keeps key material on-device, protected by PBKDF2 and AES-256-GCM.