KGeN Sale and Staked Keys Growth

KGeN will be responsible for selling new cryptographic keys to participants in the PoG network. These keys can be delegated to a specific Oracle, allowing Oracle operators to expand their staked keys, increasing their influence and rewards within the ecosystem.

Staked Keys Growth

The sale and purchase of keys directly contribute to the growth of a Oracle operator's total staked value. When participants purchase keys, they effectively delegate their stake to the Oracle operator, increasing the operator's overall stake. This system offers several benefits:

• Increased Leaderboard Position: As the staked value of a Oracle increases through key sales, the operator's position on the PoG leaderboard rises. Higher-ranked Oracles are more likely to receive rewards and recognition within the network.

• Higher Rewards: Oracles with a larger stake are eligible for greater rewards based on the reward formula outlined in Section 5. This creates a competitive environment where Oracle operators are incentivized to sell keys, increase their stake, and improve their ranking.

Delegated Proof of Stake (DPoS) Mechanism

This key sale mechanism will function similarly to a Delegated Proof of Stake (DPoS) system. Key holders (participants who purchase keys) effectively delegate their staked value to the Oracle operator, allowing the operator to increase their total stake and thus their share of rewards. However, the key holders themselves do not operate the Oracle; the Oracle remains fully controlled and operated by the original Oracle operator. Key holders benefit indirectly by contributing to Oracle's success, as the increased stake results in higher rewards for the operator, which are shared based on the performance and stake structure of the network. To ensure fairness and decentralized distribution, the number of keys that can be purchased by any single wallet or participant will be subject to a limit, and shall be specified in further documentation.

Key features of this delegated model include:

• Stake Delegation: When participants buy keys, they delegate their stake to the Oracle operator without assuming operational control of the Oracle.

• Oracle Autonomy: The Oracle operator maintains complete responsibility for running and managing the Oracle, ensuring its uptime, performance, and consensus participation. Key holders only contribute staked value, not operational duties.

• Reward Sharing: As the total stake of the Oracle increases, the Oracle operator receives higher rewards. These rewards are shared according to the network's predefined structure, incentivizing key holders to invest in high-performing Oracles.

This model ensures that Oracle operators have strong incentives to maintain high performance while allowing network participants to benefit from staking without needing the technical expertise to operate an Oracle themselves.