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Governance

Proof of Governed Stake (PoGS) refines the concept of Proof of Staked Authority (PoSA) by combining an on-chain governance protocol with a dynamic, elected validator set. On SphereNet, PoGS layers a governance framework atop Solana's Proof of Stake (PoS) consensus, complementing Solana's high-performance characteristics with a decentralized, flexible decision-making process.

Three-Token Model​

SphereNet's economic and governance architecture relies on three distinct token types:

  • SPHR (Native Utility Token): Used for staking, paying transaction fees, and fulfilling other on-chain functions. SPHR serves as the backbone of network security by incentivizing validators to uphold performance and reliability standards.

  • CORE (Governance Token): Empowers its holders to propose and vote on network parameters, validator selection, token creation, and which on-chain programs are permitted. CORE effectively decentralizes decision-making by distributing governance power to the community.

  • Stablecoins: Price-stable assets pegged to real-world currencies (e.g., USD, EUR, MXN). Their use in everyday payments, FX transactions, and institutional settlements is overseen by CORE-based governance. SPHR staking further ensures the secure handling of stablecoin transactions.

Through the separation of protocol authority across two specialized tokens—SPHR for security and CORE for policy—SphereNet balances economic incentives with effective decision-making.

Governance

Governance Program​

SphereNet's governance program oversees three critical whitelists:

  • Validators: Defines which entities can produce blocks and safeguard the network
  • Token: Determines which tokens can be created and minted (including stablecoins)
  • Programs: Specifies which on-chain programs are approved to run on the network

Beyond managing these whitelists, the governance program administers SphereNet's on-chain voting process. CORE token holders can propose network changes, deliberate on new or updated whitelisted entries, and either approve or reject alterations related to validator selection, token creation, and program deployment.

Voting Mechanism​

All major decisions on SphereNet are driven by on-chain voting. To participate, CORE holders must lock their tokens for a chosen period; additional multipliers are derived from staked SPHR and involvement in stablecoin activities. A participant's total voting power (V) can be represented as, depnds on the amount of CORE they have locked and for how long, the amount of SPHR they have staked, and their involvement in stablecoin activities.

Any participant whose V exceeds a predefined threshold can submit a proposal. Proposals remain open for a designated time-frame, during which stakeholders cast votes proportional to their individual voting power. If a proposal meets the required quorum and surpasses the acceptance threshold, it executes automatically on-chain, updating the relevant network state.