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Delegated Proof of Stake (DPoS) in Satoshi Plus

Overview​

Delegated Proof of Stake (DPoS) allows CORE token holders to participate in network security by participating in Core's validator election by delegating their tokens to validators without surrendering custody of their assets. DPoS enables CORE holders to earn staking rewards while contributing to network security, creating an economic alignment between token holders and network participants.

How DPoS Works in Satoshi Plus​

On the Core network, CORE token holders can delegate their tokens to validators to participate in consensus without running validator infrastructure themselves. This promotes a decentralized approach to validator election while distributing rewards throughout the ecosystem.

  • CORE Staking / Delegating: CORE token holders delegate their tokens to trusted validators.

  • Validator Election: The amount of CORE tokens delegated to a validator directly impacts their hybrid score, which determines their chances of being elected to the validator set.

  • Block Creation and Validation: Once elected, Validators play a crucial role in processing transactions and creating new blocks. They ensure that all transactions within a block are valid according to the blockchain’s rules and then add these blocks to the blockchain.

  • Reward Distribution: Validators and their delegators earn rewards in CORE tokens for their participation in securing the network. These rewards are distributed proportionally based on the amount of stake each delegator contributes, incentivizing both validators and token holders to act in the network's best interest.

Step by Step Process​

  1. Staking CORE/BTC Tokens: CORE holders can participate in network security by staking their tokens. The minimum staking requirement is 1 CORE token and 0.01 BTC (if staking BTC via the official website UI).

  2. Delegating to Validators: CORE token holders delegate their staked CORE or BTC to Core validators of their choice, assisting their hybrid score in the validator election process.

  3. Validator Election: Validators with the highest hybrid score, which includes delegated CORE, are elected to the validator set for a given round.

  4. Producing Blocks: Elected validators are responsible for producing blocks and validating transactions during their term, thereby earning rewards.

  5. Earning Rewards: CORE stakers earn rewards in the form of CORE tokens from the validators to whom they delegated.

Importance of DPoS in Satoshi Plus​

  • Broad Participation: DPoS allows all CORE token holders to participate in consensus regardless of technical expertise or resources, enhancing decentralization.

  • Economic Security: By aligning economic incentives between validators and token holders, DPoS creates a system where securing the network is financially rewarding for all participants.

  • Validator Accountability: Delegators can withdraw support from underperforming or malicious validators, creating a market-driven approach to validator selection and accountability.

Conclusion​

DPoS forms a critical pillar of Satoshi Plus consensus by enabling widespread participation in Core's security and governance. It creates a system where CORE token holders can earn rewards while contributing to network security without needing to operate validator infrastructure. This component works in harmony with DPoW and Bitcoin timelocking to create Core's robust, multi-layered consensus mechanism.