The Network for Direct Asset Issuance

This network adheres to a Proof of Stake model, that requites new validators be voted in by a majority of existing validators, all of whom must be licensed Financial Service Providers (FSPs) in their respective regions, ensuring a secure and permissioned validator structure.  The network commenced with an initial set of four validators, each managed by an independent FSP. It is now in the process of incorporating additional independent validators, including banks, stock exchanges, credit providers, and other FSPs.

The validators on the XCAP Network are not incentivized through transaction verification rewards. Instead, they generate revenue based on the services they provide on the network. As such, GAS tokens on this network do not possess economic value but serve to ensure that only registered and KYC-compliant users can execute transactions. This unique model provides a mechanism for automatically removing a misbehaving validator, who would also face additional legal repercussions given their status as known, regulated financial service providers.