https://forum.poa.network/t/poa-ama-session-1-ask-me-anything-session-on-july-11th/2721/4

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The question and answer can be seen answered in the video at this timestamp: https://youtu.be/eRCGzkP6GYQ?t=4893

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An edited transcribed version is shown below

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Erwin L. Tadla: Using Delegated proof of stake, what is the advantage of your technology (POSDAO) to other cryptocurrency that also using Delegated Proof of stake?

Igor: POSDAO has a lot of advantages that puts it ahead of other crypto DPoS. It is implemented in Solidity, so it runs in Ethereum Virtual Machine. It’s written in a high level language and thus its possible for other people to modify for their own sidechains. We already have multiple partners of POA working on their own migration from POA based consensus to POSDAO, so we are actually already seeing adoption. This is important because when people are working on the same technologies together they can pool in their resources.

Another advantage is that because it is written in Solidity, it makes it easier to audit, it runs within the Ethereum virtual machine so it’s deterministic. It’s a “layered consensus” so one part is in Solidity and one part in the protocol level. It can be on AuRa which is what we are using now, or it can be on Honey Badger BFT which is where we plan to move to.

For example, in EOS, voters are not paid by the protocol but are actually paid “under the table” in a hush-hush manner. In POSDAO, however, all delegators share the revenue. And not only from block rewards, but also from bridges. For example, on xDai, the fees will be introduced on the bridge and all delegators will get a fee from it. So let’s say we have 10 validators for example, and no matter how many coins validators have staked, they have equal reward per block. If you have 10 validators, 10% of the block reward is put to. to each validator, and delegators who put their stake on validators. They form what we call a pool. So let’s say we’ll have 10 validators and hundreds of delegators who have distributed their stakes on the various validators. This means we will have 10 pools. And reward between for each pool will be split equally. So in a way, it’s a form of equality.

So within the pool, the reward between validator and delegators would be different depending on how many coins delegators and validators have staked.

But the rewards of each validator will never go below 30 percent of this staking pool reward. If we have 10 validators so one validator will always get 30 percent out of total 10 percent . So that 30 percent out of 10 percent is guaranteed.

That’s something that is different from other staking algorithms. And let’s see how it works out. It’s still not in production but these are the big ideas that we are developing and wanted to develop a consensus fair for everyone participating. To have less “under the table” deals and make it easier for communities to modify and to build on it. Proof of stake is something that we have been waiting for in Ethereum since 2014, with Casper and some other development plans… but it’s still not here.

With POSDAO we hope that we’ll finally get proof of stake on Ethereum!