Delegated Proof of Stake (DPoS)

SPS Chain is governed via a Delegated Proof of Stake (DPoS) consensus model very similar to that of networks such as Hive, EOS, BSC, and many others. This means that any account with staked SPS tokens can vote for accounts that are running the SPS Chain software in order to elect the people or entities that will be responsible for validating all of the SPS Chain transactions and to determine who to entrust as SPS Treasurers that control the SPS Foundation funds. Please note that it will not cost anything or use up staked SPS in any way to vote for validators. It will simply be an additional use for staked SPS tokens and a way for token holders to participate in the governance of the system.

Each block on the Hive blockchain is randomly assigned to one of the validators running the software based on the amount of staked SPS tokens they have voting on them. When assigned a block, the validator will publish a hash of the data in that block to the Hive blockchain which can then be checked and confirmed by all of the other validators. Once confirmed, the validator will receive a reward in SPS tokens for validating that block. The more staked SPS that is voting for a particular validator, the more blocks they will be assigned, and the more rewards they will receive.