Validator Node Licenses

One potential issue with Delegated Proof of Stake (DPoS) systems is that there are only a relatively small number of accounts that will get the majority of the votes, and therefore the majority of the rewards. This means that there will not be much incentive for other people to run a "node" (a "node" is meant as a running instance of the blockchain validator software). In order to try to address that issue, a new LICENSE token will be offered which will allow anyone to earn rewards for running a node without needing to have any staked SPS votes.

The SPS Chain validator LICENSE tokens will be purchasable with a combination of SPS tokens and VOUCHER tokens based on the pricing schedule outlined below. 80% of the SPS tokens and 100% of the VOUCHER tokens spent on node licenses will be burned and the remaining 20% of the SPS tokens will be put into the SPS foundation.

The LICENSE tokens will be able to be freely bought/sold/traded on secondary markets, and it will be possible to utilize multiple licenses with a single SPS Chain validator software instance - meaning that if someone were to purchase multiple licenses, they only need to run the validator node software once to earn the rewards for all of their licenses.

This system is similar to the node license structure used by a number of other projects, which have generally been very successful, and in this case all of the value from license purchases goes directly into the SPS token ecosystem. With this system we hope to have many thousands of validator nodes running all over the world which will help decentralize, distribute, and secure the system as well as provide significant additional value to the tokens.

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