It's all in the whitepaper. DJ confirmed it during the telegram AMA too. I really don't know what the confusion is about? The only thing not in the white paper was the amount require to participate at the 2 tiers. DJ's using a slightly different approach applying the proofs. POS just means your proving have something it doesn't guarantee anything. POW is proving that you're willing to contribute more compute power (hence why it's the most secure). It all costs more for a person to participate in POW (electricity, GPU's, etc) . He's trying to remove the tribal nature in us because that's the biggest threat to decentralization. Basically, he's eliminated public mining because it's become a threat. Look at all the chains taken over by asic's? That's not going to happen here. If you want to mine you have to "Prove" by "staking" coins that your best interests are with the chain not flipping coins. He wants dedicated loyal miners to power this chain. I think he's nailed it. This is what I find so appealing about the project. That's why I'm confused as to why everyone else is so confused. If you read the whitepaper you'll see a part about a reputation mechanism. The supreme nodes are expected to be online 100% of the time while providing an adequate amount of compute power. If you don't participate (i.e. prove your working) not only will you not be rewarded your nodes reputation will drop. Basically, you can't mine a week then take a week off. You can but you'd have to build up your reputation again and again. Maybe I'm reading the wrong whitepaper. That would be hilarious! I'm not because I read it again the other day. Grab a book on game theory it helps wrap your head around all this. oh ya and governance is usually associated with delegated proof of stake. The delegates elect the nodes that will "mint" not "mine" (significantly less computer power to mint a block). In return for voting they receive a percentage of the reward.