POSDAO Whitepaper

xDai will transition to a new type of dPOS consensus called POSDAO.

Barinov, I., Arasev, V., Fackler, A., Komendantskiy, V., Gross, A., Kolotov, A. and Isakova, D. POSDAO: Proof of Stake Decentralized Autonomous Organization (April 29, 2019). Available at SSRN: https://ssrn.com/abstract=3368483 or http://dx.doi.org/10.2139/ssrn.3368483

xDai validators are currently selected organizations from the Ethereum community. They provide consensus as a service to the xDai community, and do not receive meaningful rewards (they receive transaction fees, which are fractions of a cent). This is not a sustainable model, and does not provide the opportunity for the greater xDai community to participate in the consensus process.

We will be shifting to POSDAO consensus shortly, a new delegated Proof of Stake protocol. POSDAO will introduce a staking token, called STAKE, as well as a new consensus model where individuals who own STAKE may become validators or may delegate their stake on current validators in order to protect the chain. Validators and delegators will receive rewards in exchange for providing STAKE.

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