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.