FPoS – Federated Proof-of-Stake

Should we create workgroup to work through FPoS model both from technical and gov sides?

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The group of Factom Authority Node Operators (including BIF, De Facto, Factoshi, Go Immutable, VBIF) proposes FPoS (Federated Proof-of-Stake) model. This thread is for open discussion of FPoS with ANOs and community holders. There are no timelines for discussion and no polls will follow it.

The Factom protocol is at a crossroads. We are in decline and without radical change we may not recover. Attached below is a proposal for a Federated Proof of Stake (FPoS) model that aims to reinvigorate the Factom ecosystem and to bring new stakeholders into the fold.

This proposal is not a governance proposal. It is broadly compatible with many achievable governance models, including our current governance, the GWG proposal, and a new system that is briefly touched upon in the attached document.

Moreover, the proposal outlined here has been designed to be realistically achievable within a relatively short timeframe. This initial version does not require any changes to Factom Protocol consensus; it likely would not require a hard fork.

Furthermore, the proposal is flexible. It outlines a framework, but there is a lot of room to maneuver in terms of the details. There are also several options that can be combined or morphed depending on the course of this discussion.

Briefly, version 1 of a FPoS system would have the following characteristics:
  1. FCT holders would be able to stake with an ANO to win a share of inflation. Stakers would not immediately have a say in governance, but the addition of stake would pave the way for that to happen in v2.
  2. ANOs would be required to stake a minimum amount of FCT with themselves in order to align incentives with FCT-holders.
  3. The grant pool would continue to receive funding.
The purpose of this discussion is to gather input and ideas from the Factom community. It is open to both ANOs and non-ANOs. We want this to be a collaborative effort where everyone feels a sense of ownership over the finished product. The contents of the proposal provide a starting point for discussion. The proposal has general comment permissions and is intended to be a living document.

If we are able to generally agree that the FPoS model is the correct way to go, we should convene a virtual conference to hammer out the details as we did when we launched M3.