Oracle Acquisition and Staking Requirements

The current Oracle operation on the PoG network is governed by a Proof of Authority (PoA) mechanism. Under this model, Oracles must be approved by a central authority, i.e. KGeN, which grants them the exclusive right to validate transactions, perform PoG score calculations, and participate in the consensus process.

• Central Authority Approval: Oracle operators are carefully selected by the central authority based on predefined criteria such as technical capabilities and reputation. Only after this approval are operators allowed to activate their Oracle and contribute to the network's validation.

• Authority-Based Control: The central authority ensures that only vetted and trusted entities are permitted to run Oracles, maintaining high standards of security and reliability during the PoA phase.

Requirements for Oracle Operators

Once approved, Oracle operators are required to purchase the PoA NFT using a specified amount of Stablecoin in order to activate their Oracle and participate in the network's validation and scoring processes. This mechanism is designed to incentivize proper behavior and increase the operator's stake in the network.

• Issuance of Cryptographic Keys: Upon purchase, the Oracle operator will also be granted X number of cryptographic keys, which is directly proportional to the amount used to purchase PoA NFT. These keys, represented as non-fungible tokens (NFTs), give the operator permission to perform validations, calculate PoG scores, and participate in the consensus process. Each key is unique and secured with advanced cryptographic techniques. These NFTs are non-transferable until the network transitions to the Proof of Stake (PoS) mechanism after 3 years.

• In lieu of the purchase of PoA NFT, the oracles will enjoy rewards in the form of KGEN tokens as well as the Stable Coin yield for running the nodes. The reward structure has been specified in further documentation.