Stage 2: Governance Group and Validator Role

As the system matures, Stage 2 introduces the Governance Group, which consists of $POLY token holders. This group will serve as validators, with more authority to approve or deny proposed event outcomes, further decentralizing the power of resolution.

How Stage 2 Works

  1. $POLY Holder Delegation

    • $POLY holders will gain the ability to participate as validators, responsible for reviewing and approving the proposed outcomes submitted by the oracle nodes in Stage 1.

    • Validators are delegated their authority by Polyquest, giving them a shared responsibility for outcome validation.

  2. Validator Rewards

    • Validators will earn rewards from a portion of the platform fees generated by Polyquest.

    • These fees will incentivize accurate and fair validations, as validators are compensated for the successful operation of the prediction markets and accurate outcomes.

    • Validators will be held accountable, as any attempt to manipulate outcomes could result in slashing mechanisms or reputation loss, reducing their future earnings.

  3. Delegation of Powers

    • Power is shared between the oracle nodes (Stage 1 participants) and the governance group.

    • While oracle nodes submit initial outcomes, the governance group validates or denies those resolutions, creating a balance between decentralized reporting and validated consensus.

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