Sustainable Proof of Stake

Overview

SPoS powers the entire 5ireChain ecosystem. It is the world's first governance-based system of reward distribution that provides incentives to network actors based primarily on their commitment to the 17 United Nations Sustainable Development Goals.

Different Roles within Proof of 5ire

Stakeholders within 5ireChain possess various roles; the 3 critical roles involved are as follows:

Validators

Validators are responsible for building new blocks, verifying transactions within the network, and maintaining the network's infrastructure and security. To run a validator node, a deposit of 5ire Coins is needed to be staked. 5ire Coins are the native coins of 5ireChain, and validators will earn rewards in 5ire Coins after verifying transactions and producing new blocks. It is also important to note that since negative conduct is penalized on the network, a validator's stake may be slashed if they don't adhere to the protocol.

Nominators

Nominators are responsible for holding coins and contributing to the network security. They can nominate and select, or back a maximum of 16 validators.

5ireChain rewards 5ire Coin holders for participating as a nominator within the network. A nominator can select one or more validators to stake a particular amount of 5ire Coins, and selected validators can share rewards or penalties with other nominators on a per-staked 5ire Coins basis.

Chilling (Inactive)

Validators and Nominators are considered to be "chilling" when they become inactive. While Nominators in this state would no longer be regarded as voters, Validators will not be considered candidates in the next election run.