Network Operation and Security
The token is designed to facilitate network consensus through staking. Similar to other networks that use the proof-of-stake algorithm, all DOT holders are incentivized to secure the block validation. The system rewards DOT holders which are reliable, otherwise, they could lose their entire stake. This principle makes the system stay secure.
DOT owners have complete control over the protocol. The ecosystem has no miners and uses a proof-of-stake algorithm, so holders manage all exceptional events such as protocol upgrades and fixes. Therefore, the network is governed transparently on-chain, by the stakeholders, who wish to participate.
The token gives the possibility to add new parachains or to remove the outdated ones by removing bonded tokens. This function will be able to add new parachains by tying up DOT. In this case, the token will be locked during their bonding period and released back to the account that bonded them after the bond’s duration has elapsed and the parachain is removed.