Delegated Proof of Stake and Validator Nodes
The GLS governance system will work via a Delegated Proof of Stake (DPoS) consensus model very similar to that of networks such as Hive, EOS, BSC, and Splinterlands. This means that any account with staked GLX tokens can vote for accounts and elect the people or entities that will be responsible for validating all of the transactions on the platform and who will control the foundation funds. Please note that it will not cost anything or use up staked GLX in any way to vote for validators. It will simply be an additional use for staked GLX tokens and a way for token holders to participate in the governance of the system.
The Genesis League Sports Platform will utilize a Delegated Proof of Stake system. This means that instead of using a very powerful computer to verify the results of the blockchain, anyone is able to engage in the system. After each block, which is a set number of transactions, is created, a validator will verify the results of the block and earn a reward. The validator is chosen in one of two ways: being voted on by GLX token holders or purchasing a license from the DAO.
Each block on the Hive blockchain will be randomly assigned to one of the software's validators based on the amount of staked GLX 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 GLX tokens for validating that block. The more staked GLX voting for a particular validator, the more blocks they will be assigned and the more rewards they will receive.
The GLS validator software will be 100% open source, available for anyone to download and run without any costs or restrictions from us, and simple to implement on almost any computer. We expect it will have relatively minimal hardware requirements and we plan to initially release it as a docker container that can be run on a Linux machine with Windows and Mac versions to follow. Exact system requirements and setup instructions will be provided as we get closer to the open beta launch.
One potential issue with the above system is that only a relatively small number of accounts will get the majority of the votes and, therefore, the majority of the rewards and control.
This means that there will not be much incentive for other people to run validator nodes as they will be unable to garner the votes necessary to earn rewards. One way to address this issue is for the DAO to sell “validator node licenses”. Each validator node license will allow anyone to earn rewards for running a node without needing to receive any staked governance votes.
Validator node licenses will be purchasable only with GLUSD and a discount provided if you're spending GLGT. Pricing details are still to be determined. The sale of licenses is currently planned to send 10% of the revenue to the GOALS company, 15% to the DAO, and 75% is planned to burnt.
The licenses will be NFTs that can be freely bought or sold on secondary markets. It will be possible to utilize multiple licenses with a single GLS validator node 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 several other projects, which have generally been very successful. However, in this case, the value from license purchases goes directly into the GLS token ecosystem. With this system, we hope to have thousands of validator nodes running worldwide, which will help decentralize, distribute, and secure the system and provide significant additional value for the GLX token.
As a token of appreciation for our early supporters, we will be planning a free airdrop of a portion of the total GLS validator node licenses for SPS validator node license holders. The details will be shared later.