What is the Pythia, and how does it validates Proof-Of-Strategy
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A previous article depicted a high-level overview of the Strategist’s role. This article will cover Pythians (collective of Pythia) and its relation to the Proof-Of-Strategy consensus protocol. Here is a summary of the core components of the network that are needed to understand Pythia’s role fully.
Athena: The governance token that gives voting rights and staking rewards in Hermes (utility token).
Hermes: The utility token generated by the staking of Athena and used to pay for smart contract execution on the network.
Client: The user who wants to execute software under a set of preferences and conditions in exchange for an amount of Hermes.
Strategist: The entity that supplies the management unit with an execution strategy that matches the clients’ settings while minimizing the processing cost in exchange for Hermes.
Management unit: The smart contract that manages Hermes and Athena balances, verifies consensus over the optimal strategy, oversees elections, and controls the virtualization units.
Virtualization unit: Smart contracts that handle the execution of the client’s bytecode. They are deployed on various blockchains.
Proof-of-Strategy: A novel, useful Proof-of-Work where the Strategist (the Proof-of-Strategy equivalent of the miner) earns Hermes by providing the optimal strategy for executing the client’s software under a set of constraints.
Chain profile: A set of characteristics that define each of the supported blockchains in the network in a standardized manner.
Agora DAO: A decentralized autonomous organization that regulates the ChainsAtlas ecosystem based on the voting of its members. Every Athena staker, e.g., Pythia, is a member of the Agora DAO and has a right to vote.
OLYMPUS treasury: A reward pool that collects part of the Hermes paid by the client to distribute among Pythians and the grant fund at the end of 28 days cycles. Each Pythia’s reliability score dictates its share of the OLYMPUS treasury. The use of the grant fund is decided through the Agora DAO, in which all Pythians have a vote.
What is a Pythia?
Pythians are oracle nodes operated by Strategists. They guarantee state synchronization among management units, vote on elections, validate strategies, and mint the Hermes utility token by staking Athena. The Strategist must stake at least 100 Athena tokens to run a Pythia node.
How the validation of the strategy occurs?
A set of Pythians is selected before every strategy execution to validate it. Three criteria regulate the selection of these Pythians:
- Stake with a weight of 40%
- Randomized selection with a weight of 20%
- Validation reliability score with a weight of 40%
Management units set the validation reliability score by accepting or ignoring the Pythians’ evaluations of the supplied strategies. Each Pythia’s initial score is 0. Management units update the Pythia score when the Pythia’s assessment of a strategy (positive or negative) is the same as the one provided by at least 51% of the selected Pythians for the same strategy.
On what Pythians vote?
Pythians have the right to vote on the Agora DAO. and to approve or reject chains’ profile updates. Consequently, Pythians are the ones who get to choose which blockchains ChainsAtlas support and how they score on a list of elected properties including, but not limited to, Decentralization score and Privacy score.
To reward such an important role, the OLYMPUS treasury has a special fund dedicated exclusively to rewarding Pythians with a share of the transaction fees on the ChainsAtlas network. Each Pythia’s reliability score and stake define the amount of Hermes it gets from the Pythians fund at the end of each 28 days cycle.
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