2.1 Consensus Mechanism

Argochain serves as the central system coordinating all aspects of our operations, from implementing the Proof of Value (PoV) protocol to facilitating democratic governance decisions.

Argochain employs a Proof of Stake (PoS) consensus mechanism with unique features that enable the storage of immutable and verifiable records of training data on the blockchain.

PoS and PoV work hand-in-hand to ensure the smooth operation of the ecosystem. The integrated consensus operates as follows:

1. Transaction Submission:

   • Users submit transactions, including content, to the network.

   • Transactions are broadcast and collected in the mempool.

2. Validator Selection for Block Proposal:

   • A validator is selected to propose the next block, based on factors like the amount of AGC staked, duration of staking, and the validator's value contributions to the network.

3. Block Construction:

   • The chosen validator constructs a block from transactions in the mempool, ensuring each transaction's validity.

   • The block may include various types of content, with an implicit valuation based on the network's value criteria.

4. Initial Validation by Peers:

   • The proposed block is broadcast to a subset of peers for preliminary validation, focusing on transaction and content integrity.

5. Content Valuation Process:

   • The content within the block is assessed for its value to the network through a combination of community assessment and algorithmic evaluation.

6. Consensus Voting and Incentive Calculation:

   • Network peers participate in consensus voting to endorse the proposed block.

   • The consensus process also calculates incentives, which include:

     • Block validation rewards for the proposing validator, derived from transaction fees and possibly new AGC issuance.

     • Content value rewards for users who submitted valuable content, as determined in the valuation process.

     • Staking rewards for validators and delegators participating in the network, proportionate to their staked AGC and period of staking, to incentivize long-term network support and security.

7. Block Finalization and Rewards Distribution:

   • Once the block receives sufficient endorsements, it is finalized and added to the blockchain.

   • Rewards are distributed to the block validator, content contributors, and stakers, with each group receiving AGC based on predefined criteria reflecting their contribution and participation in the network's security and value creation.

8. Propagation of the Finalized Block:

   • The finalized block is propagated throughout the network, with each node updating its blockchain copy.

   • The distribution of rewards is transparently recorded on the blockchain, ensuring clarity and trust among network participants.

9. Adjustment and Optimization:

   • The network includes mechanisms for adjusting staking rewards and other incentives based on factors like total network stake, inflation rate, and the overall value generated within the ecosystem.

   • This ensures that the incentive structure remains dynamic and responsive to the network's growth and changing conditions.

Our approach illustrates how staking rewards under a PoS mechanism are seamlessly integrated with a unique Proof of Value system in Argochain, fostering a robust, participatory, and value-driven blockchain ecosystem. This combination ensures a resilient and inclusive platform where every participant's contribution is recognized and rewarded, driving continuous innovation and growth.