NEAR MPC Proposal Livestream: With Sovereign and NEAR One

Captions as YouTube publishes them, usually machine-generated, so product and people names can be misheard.

1. 0:02

   All right. What's up everybody? We are officially live and this is a hopefully it'll be a good discussion on the ongoing MPC signer proposal in the House of Stake. Um I'm just going to be doing a little bit of a brief introduction of everyone here and then letting the conversation go off on its own. So, um, we have Anton from Near One, we have Kendall from Proximity Labs, we have S

2. 0:29

   from Sovereign, and then we have, uh, two of our very own House of Stake and Governance support, uh, um, personnel, Angela, who is House of Stake head of governance, and Klouse, who's CEO of Hack Humanity. Um, should be a fun conversation. I'm gonna hand this off to Angela and um looking forward to hearing what's the latest on the MPC proposal.

3. 0:54

   Yeah. Hello everyone. I'm Angela, head of governance at House of Stake. Um yeah, let me give you a brief introduction of where we are heading to with House of Stake, the current status, um and let me also give you some more details on what we'd like to discuss today.

4. 1:13

   Can you pull up my slides? Okay. All right. So, near house of stake focused on good decisions, not only decentralized alone. Um, house of stake is the decentralized decision-making engine at near. Um, it's based on near token holder vote. Voting power at house of stake depends on the amount of near locked voters and the duration of near locked.

5. 1:40

   So this creates V near your voting power. It works like this. You lock near, you receive V near tokens. You hold and grow voting power and then you delegate and vote and participate in decision-making at House of Stake. You start here at houseofstake.org assets.

6. 2:01

   Currently we are running a program that offers additional rewards for locking near on top of liquid staking. Uh so this is particularly relevant for those um who are keen to receive or make put their NEO to work. Nevertheless, you can lock near at any point in time and receive V near voting power.

7. 2:25

   Currently the status of near locked is almost 4 million locked in the system. Uh 379 participants in decision- making and the key principles at house of stake. We balance token based and knowledgebased decision making aim to achieve 10% near locked in the system decisions in the best interest of the NEO ecosystem and progressive decentralization and the proposal that we discussed today

8. 3:00

   is a perfect example for this uh MPCC node infrastructure financing program. We have been collaborating with Cell and Kendall on this as proposal authors and this session should give everyone the opportunity to take a look at the proposal, understand why this is might be will be in the best interest of NIA, how execution looks like, how evaluation of the program looks like. Um and

9. 3:30

   ultimately of course lock your ear participate in decision-m and make your voice count. I stop here and let's start with a quick overview on why MPC signers are so relevant and why this decision on the financing program is so important.

10. 3:52

    Thanks Angela. So maybe I can kick it off on this side and just contextualize the background and logic for putting forward this proposal. Um, which really stems from a year and a half of work that the near one team has led with Anton and Bowen on the development side and as well with Kendall and the proximity team really being the stewards of bootstrapping the system uh to the

11. 4:15

    point that it is today. Uh so for those that are not familiar the MPC nodes that are involved in chain signatures as a product on near are integral infrastructure sitting behind the near intense product. Obviously over the past six to nine months we've seen incredible growth and traction around near intense and a lot of the foundational components and increasingly over the next six

12. 4:39

    months uh will be utilizing chain signatures and the MPC node infrastructure that sits behind them. So to date, these nodes have been uh supported from an incentive perspective through what I described in the proposal as a less sustainable financing approach, which were really intermittent grants that Kendall and the proximity team executed to start the bootstrapping phase of the program. Um and then ultimately as we were standing up sovereign over the past 90 to 120 days

13. 5:10

    and really leaning into scaling the MPC network and driving some business development work around near intents, we recognized that one of the key points that was required for us to engage in expanding the network was really solving the incentive system uh that sits behind the MPC notes. So we set out on this journey about a month and a half ago now to draft and author a proposal in coordination and collaboration with Kendall and his team. Um and then also obviously over the past two weeks with I

14. 5:41

    would say great engagement from the community, a number of different perspectives, governance, technical and otherwise um to rally around a proposal to provide a sustainable incentive system leveraging House of Stake now reaching maturity to consider a vote of this nature. um and then ultimately putting forward the proposal that we did two weeks ago and then subsequently a second iteration later last week. Uh we

15. 6:05

    view this as a critical and important proposal that funds critical infrastructure and ultimately will power near intense but behind the scenes to build more resilient secure and decentralized infrastructure. Um, so I'm sure others have comments in color from their perspectives, but I do see this as one of the most important infrastructure focused incentive design spaces that we

16. 6:29

    could be operating within. And so we felt it was imperative that we put this forward first uh for house of state consideration. I don't know guys if you have anything to add on to that or if I did a decent job. [snorts] I'd say I'd say a great job. No, I mean like solid. you really hit all all the key points there. Um I think what I'll add to that is you know when when this project originally kicked off which was

17. 6:54

    more than 18 months ago now it's probably about two years ago when or even even more than that when it kicked off in development um you know it was still originally it was there there was a lot of R&D that needed to be done and uh you know the year one team has been fantastic in doing that and you know the original set of validators were chosen in large part to be kind of R&D partners but also ones that had really strong reputations for you know acting as professional validators both within near

18. 7:18

    and then also within the broader industry. Um, you know, fast forward to today and uh and Anti can shed more light on this, but like you know, the uh the NPC network is like very critical part of just like the near technology stack in general. Uh and so, you know, that's that's part of the reason that we think it's really important that, you know, the way that uh the way that the network is operated, funded, uh you know, developed, all of that is is is very aligned with kind of how like near

19. 7:42

    core development and you know, near core funding uh work in general. you we think that's what's going to uh you know properly enshrine it as uh key important production. So I mean from a quality perspective it's been fully production for over a year now and and Anton you know can shed more on that but um you know I think yeah it's it's a really really uh important time to kind of uh move the entire you know workings of the system to you know reflective of the

20. 8:07

    position that it holds in in kind of the near product and ecosystem stack. Let me also probably chime in um from the technical point of view. I'm less versed in the product and ecosystem side of things but uh I can tell you that from the technical point of view uh MPC and specifically chain signatures that are powered by MPC network today or an extremely powerful primitive. It's something that allows people to build

21. 8:35

    very interesting use cases uh that are controlled from near like very near centric but unlocks incredible things that people can do crosschain and it it's not limited to intense it it's actually way more and there are products other products today that they're using MPC network and I don't know maybe uh it's it's a topic for another time or maybe later in this call but we actually

22. 8:58

    are working on more things to be added not just chain signatures but other ways of using um MPC networks to provide additional even more powerful primitives that will unlock even more things in in the crosschain world and if there is interest and or we have time to discuss it I'm happy to share to share our view and our vision uh but yes this is not limited to the current state of things this is something that I personally think should be a core value proposition

23. 9:27

    of near as a protocol um for all the developers is building on near and for near users. Okay. Um maybe we take a look at the details of the proposal s now and you walk us through the components of it. Yeah, I'm happy to do that. Would you like me to share my screen on the governance forum and walk through it?

24. 10:04

    Yeah, I think so. Okay, let me pull this. Um, can you help us pull up uh the screen? Let me This is the first time I've screen shared in Streamyard, so there's a chance that Okay, here we go. Window. Here we go. I think Aussiey's dropped. So, it's just just us now. Yeah. Okay. Loading.

25. 10:29

    See, we've had a very vibrant conversation back and forth across a number of members in the community. So, let me just get back up to the top here. Absolutely. All right. So, everyone can see this. Perfect. All right. So, a lot of the abstract and context we just walked through. I think on the problem statement side or kind of issue that we aim to resolve with this proposal is the shift in kind of what I describe as a level two to three maturity and the

26. 10:58

    incentive design around the MPC nodes which as I mentioned previously have been largely funded through intermittent grants uh to date and ultimately need to arrive at a sustainable token-based incentive system through which we believe house of stake is the right forum for discussion debate and deliberation around its design. Um, so ultimately we put forward this viewpoint in terms of what this can look like on

27. 11:24

    an emissions funded basis leveraging protocol emissions that are allocated for funding critical infrastructure like the MPC nodes. At the core of the proposal, which again was revised last week, is a mechanism that provides both a floor and a cap on the near tokens that would be allocated on a per node basis and across the MPC node network at large. on the idea of the structure of the proposal around the economics was to learn from proof ofstake systems and the

28. 11:57

    debate that has continued around the cost of economic security within them to define something that consistently provides an incentive that at the lower boundary offsets the key infrastructure and operating costs associated with running an MPC node and on the upper boundary provides a capped incentive structure paid out in to MPC node operators creating a long-term incentive alignment across the MPC node network and the protocol itself. And so the construct of the

29. 12:28

    floor and the cap were set at a $150 near which unfortunately we're under today but I think we'll rebound soon. Um, and then ultimately on the on the cap side at a $3 per token price with the monthly payment on a maximum basis being at 4,600 near per qualifying MPC node. We had a number of discussions in the forum around the actual economic cost to run the MPC nodes which I can probably set up and then ultimately Anton can jump in from firsthand

30. 13:01

    experience and maybe cover some of the technical elements of um but in effect each of the MPC node operators within the system need to run three MPC nodes. one of them being for testn net, one of them being for production utilization on mainnet and then another providing backup and resiliency and recovery to guarantee the uptime and availability of chain signatures and the MPC nodes themselves. And so as we looked at

31. 13:28

    quantifying what is the economic cost purely on the infrastructure side there are two different paths that you can take to delivering this. One is a capex driven approach which loads the upfront costs then requires hosting selection and ultimately the delivery of software monitoring all the things that come around it. Um and then the second path which is expressed in some of the

32. 13:51

    comments but will ultimately live in the GitHub documentation around the technical hardware requirements where there are a number of thirdparty hosting vendors that you can select and leverage their pass type services to stand up these nodes. In the minimum boundary case, the lowest cost infrastructure provider today in the market is $1,800 through OVH, which a number of these

33. 14:14

    nodes are running in today. Obviously, we do not want to design the system where everyone is focused on a single hosting provider. We need diversity of infrastructure and diversity of underlying footprint to increase the resiliency of the system. But using the lower boundary cost of 1,800 per month multiplying times three is 5,400 USD per month in operating cost purely for infrastructure without contemplating the

34. 14:40

    people process time and software that's required to monitor and oversee the node implementation. Um I just wanted to walk through this verbally and then I'll pause and Anton or Kendall can jump in and add some color here. But this was a key point of discussion back and forth in the forum. Um, and I want to make sure we ground and provide clear facts in terms of the logic around why we've designed both the floor of the cap and

35. 15:05

    then ultimately how we've modeled the actual costs to run this infrastructure. So, I'll I'll pause. Anton, if you want to jump in, go for it. If if I've covered it well I No, you did you did a great job. I I think only minor corrections on the uh pricing side. First of all is that it's dynamic. We for example internally did a lot of research uh May last year looking for multiple providers. They like the main problem we ran into back then was

36. 15:31

    we couldn't even identify more than two providers easily that offer the correct uh like they required TDX support. This this stuff is just new. It's only available in the latest generation of Intel CPUs which means not so many providers even adopted it. and going with a single provider as you correctly said is is completely uh not an option.

37. 15:53

    So we spent significant time looking for different provide through different providers. I think we back then we were able to eventually identify like three or four which is also not ideal. And another thing that we realized is uh unfortunately since this is the latest uh generation CPU uh it also usually comes with beefier machines and like more expensive servers. Basically what

38. 16:17

    the providers do when they like when they go for the latest generation they don't go for a cheap uh machine with the latest CPU they also add uh like significant memory on top they uh add significant storage on top and that all contributes significantly to the price.

39. 16:34

    So then even though the I think if I'm if I'm not mistaken the correct the current requirement for the for memory is around 64 GB I don't think there exists a single provider that offers uh the TDX server with required CPU uh with that amount of memory. You're actually paying more for it today. I hope this will change and I think this will change in the future but this is the current reality. Um I think the current price

40. 17:01

    like the cheapest current price is around 1,600 or something like this like plus minus but not far from 1,800 quoted here. Uh but again it's dynamic and it's changing and like it's it's the cheapest and then we also know that things like I think GCP was a a place where we've seen it for 8,000 months uh and so on. So it's like the range is huge and the floor is like somewhere between 16 to 1800 which can also change any moment.

41. 17:32

    Yeah. Just just two points. Thank you Anton. I think that was extremely well put. There's two points that on this that I think build on what you're describing here is that part one dynamic pricing. So if I'm quoting 1800, it was on a point in time basis when we were building this and looking at actually sourcing the OVH infrastructure and what did we actually pay in building a test node to get the experience to actually deploy on testn net understand all the loaded costs associated with it as well as the time

42. 17:57

    and energy and devops tooling that was needed to do this. Um but we cannot design an incentive system that locks the structure to the lower boundary cost and then drives MPC node providers to result in centralized infrastructure that completely erodess the security and resiliency premise of building a distributed MPC network. And so we're still very much on the lower boundary of

43. 18:21

    the range even with dynamic pricing. But just from a design on the incentive side, we can't land in a position where we push everyone in a direction that results in unintended but probably should have been foreseen consequences.

44. 18:35

    And then this the second piece of this is obviously the landscape is changing around TDX as well as other types of TE environments. And so part of the revision that we introduced in the second iteration of the proposal was around an annual governance review process through which being air token holders can vote to change the incentive structure and emissions allocated to MPC nodes in context of the changing

45. 18:59

    infrastructure landscape and associated costs. And so this is in the same spirit of what we intended to do by introducing the floor and cap where we're looking at this through the lens as stewards of near protocol which naturally sovereign we are being the second largest holder of near in the world. So um I don't know Kendall if you have any other comments on this section. Um I think we did a reasonably good job covering off on this.

46. 19:29

    Yeah I think so. I mean just to to kind of reiterate the point that like that a lot of people made a good point about um you know AMD and and how that can SEV at SNP how that can uh potentially lower costs uh which I know the J1 team is is looking to. Now that being said and and you already highlighted this is like uh you know decentralization means a lot of different things and robustness means a lot of different things and so like we you know we we actually do want to have like a pretty intentional sort of spread

47. 19:54

    amongst like cloud providers, regions, jurisdictions, uh hardware, you know like we don't want to be all in on I mean TX we're very happy with it but it's it's you know uh the there's a complex set of potential issues with uh TE's that need to be uh considered and so you know making sure that we that we uh you know approach all of this like very rigorously is what's going to make the system you know the

48. 20:19

    strongest and then is is you know ultimately going to you know make it best positioned to uh you know serve the extremely extremely core function that uh it is serving that we expect to you know to only to only grow over time just to make sure that you know community is aware of that like just this is this is all very being done very intentionally and I think it's exciting now the community gets to be involved in kind of like the decision- making process and like the discussion process uh which is

49. 20:44

    you know a great a really key step um and uh you know just want everyone to be aware that like this is this is all informing kind of how how the system is evolving can I also jump in uh you mentioned AMD and I think I've seen this also in the conversation this is like this is first of all it's not as as trivial from technical point of view uh oh yeah sorry I already started talking maybe there's a delay um so

50. 21:08

    basically uh it's first of all it's not as trivial as it seems because there are actually two generations of SAV S&P the uh AMD's uh TE support and first of one of them is known to be broken and second one is actually fresh and is not yet like very uh well uh available but more importantly switching to AMD instead of Intel's TDX is is the wrong solution we don't want to be dependent on a single vendor what we want we want to build

51. 21:34

    like a multi- vendor and ideally not just two AMD and Intel ideally ARM will come up with their implementation they're working on Ideally more stuff will is will be there and we should have this designed in a way that compromising a single vendor or even two won't compromise the MPC network. Meaning we still have to make it possible for for the MPC operators to run TDX even if

52. 21:57

    it's like significantly more expensive the AM than uh running an AMD node. uh same as with the decentralization concerns, we don't want everybody to to consolidate on a single vendor and a single uh data center provider. All right. So, one of the key components of this was really around uh KPIs and monitoring. And so, part of the idea that's embedded in this economic proposal is around the idea of slashing effectively u which is defined in an exhibit. I think it's exhibit one on the

53. 22:33

    appendix. uh actually it might be exhibit two but basically defines thresholds for qualification for MPC node operators with a 99 99% uptime receiving the full allocated or computed rewards for a period on a look back basis and adherence to 95 to 99% uptime having effectively a 50% slash of rewards which again with the cost structure in mind here means that not adhering to the SLA

54. 23:02

    requirements actually results in an operating loss to the MPC node provider. And so there's clear expectations in terms of monitoring uptime and availability. And then ultimately near one has developed monitoring solutions that are in place today that look at the MPC network and ultimately understand the behavior of the MPC nodes and whether or not they're in compliance with these things. Um, so rather than going through the granular kind of KPIs around the SLAs's, I just wanted to call

55. 23:29

    out the design of this and the idea of an economic disincentive for failure to perform. Um, which is kind of the first step in consideration of ultimately if an MPC node is not consistent with the SLA requirements, a decision can be taken through a voting process to actually remove that NPC node operator from the system.

56. 23:54

    Um there's a number of considerations here. I think the RAY chart and stakeholders involved is an important uh point for us to cover out loud before we shift gears. Um just around kind of who's responsible for these different components, who's accountable, consulted, informed. Um, so the piece that was a discussion and I think is in the spirit of progressive decentralization was who should actually own the selection or deselection of MPC

57. 24:20

    nodes at this point in time. And I took a stance in the forum which I stand by today that we are still not at the point of maturity as a token-based voting ecosystem to drive a decision that could result in our pace and velocity to start to scale this network to key providers to expand resiliency uh and security of the MPC system. And so we have taken on the responsibility at sovereign to drive the go to market motion associated with MPC node

58. 24:51

    selection and we'll publish the criteria through which we evaluate these infrastructure providers looking towards things like service organization control frameworks and other established frameworks that give assurance over uh availability uptime and performance guarantees that those providers will run. And we will consider all of the different criteria as we look at that go to market motion. But ultimately we will be driving that and then making

59. 25:15

    recommendations based on our analysis for new MPC node operators to enter the system. Uh this was a point where I think people wanted to have a token vote up front uh for a number of different reasons. Maturity pays to market. I don't think that's the right design in the current state. uh and ultimately in the future it will be but it is not today on February 3rd February 2nd 2026.

60. 25:39

    So I just wanted to call that out on the racy chart. I'll pause. I don't know if Kendall or anyone else have additional comments to make at this point but I wanted to be explicit in sharing my view on this topic because it was a point that was revisited multiple times in the governance forum.

61. 25:58

    I'll add something here. I think often times in um DA's decentralized systems the this racy matrix is not defined um and I was a real advocate with cell that we should put this up front um and yeah in these kind of systems you can have a diffusion of responsibility um if if someone says you know everyone's doing it then no one's doing it and so when you have this many actors and parts that

62. 26:22

    you need to coordinate it's really important to be explicit like this and then we can you know track who's doing what uh even amongst the participants that need to coordinate but also token holders and delegates that want to monitor um what's going on.

63. 26:36

    [clears throat] Yeah, totally agreed. I think the other call out on this as well and thank you to Angela and the House of Stake team Colossio as well. Um there's two key components and let me add an aspect here. Sorry, I have a terrible delay. All right, just to add two aspects here. Um, progressive decentralization. I mean, here as house of stake, we are taking two roles.

64. 27:07

    Number one, we are the platform to allow for voting and making a decision in a decentralized fashion. And this is new to a program like MPC node infrastructure financing at NER. And the second one is um we facilitate the execution of a proposal. And here in this case we take the role um of paying out the rewards to MPC signers and both are equally important to deliver successfully together with all stakeholders and we are taking an on a

65. 27:40

    new role here. Uh we have to establish also own operational capacities and it's good to do this step by step. That's why we are uh 100% in support of progressive decentralization how we shaped it here. And also we want to add value wherever we can. So we might um have different incentive structures, different um updates of this program in the future.

66. 28:08

    But we determined and we decided and agreed to start with something simple to embark on this journey of decentralization at near with a first solution without limiting the sophistication of the program going forward. You hit the exact points that I was going to hit, Angela, which was thanks to the House of State team for in the same spirit taking on certain responsibilities that ultimately in the future may be automated. For example, uh development work to build out an automated contractbased payment system

67. 28:48

    that checks the year one reporting and then issues the rewards. And so there are areas here where we can continue to progressively decentralize over time. All right. Um, I think those are the key components. There's a lot more in this proposal. I know that many of you that are participating on the call have read this in detail and have engaged in proper discussion on the forum. And I think we're better served spending the final 27 minutes here, opening up the forum for questions in the chat and then

68. 29:19

    reacting rather than be taking you kind of scroll by scroll through different sections of the proposal. I do think those are are kind of the key components uh that were the basis of a number of discussions in the forum. And Azie, I'm not sure if you're still here. I actually can't see the chat on my side if there are questions coming in.

69. 29:50

    Okay, seems we don't have any questions yet. So, everyone feel free to add your questions to the chat. I'm just looking at the live stream from the YouTube side. Someone's asking, "What is MCP?" Maybe we could give a basic um Yeah.

70. 30:15

    MPC. Yes. Yeah. Definition. Yeah. We should ask them back if they want a technically proficient description. And then we point to Anton. And if you want a business layman view, I can explain it. No, I'm just kidding. Anton, please take this one.

71. 30:29

    Yeah, I I'll do like first like very simple and then give a little bit more technical details. MPC stands for multi-party computation. It's basically a way for multiple machines uh or multiple parties to produce some like calculate some outcome like in a very very generic way. In our specific case, we're not calculating anything like it's not like a distributed computer. What we're doing, we're calculating

72. 30:53

    signatures. That's it. So, as of now, that's the only thing we do. Uh each operator has a key share like a tiny tiny piece of the shared private key. And you need uh m of them m out of n to to collaborate to be able to to produce a valid signature uh with that private key uh without any of them sharing their private like keeping while they all keep their shares private. uh they still can

73. 31:21

    produce valid signature over some uh information which means that uh like in practical terms if you have an account on near and then you say I would like to sign the transaction on Ethereum I'll take this transaction and please sign it for me then the MPC operators will take your payload derive this key for you like which will be derived for specifically your near account um and this will also translate in an ethereum address on the Ethereum chain uh that is

74. 31:52

    controlled by your near account and then MPC like in a distributed fashion will sign this transaction will produce a valid signature that you can take and relay to Ethereum and execute the transaction on Ethereum. Obviously, this is like a very raw thing and I don't think people will be directly doing it.

75. 32:07

    I mean we tried it, it works but that's something that is very very inconvenient. Hence there are like SDKs, there are bridges that are doing exactly this for you. So you don't really need to do this yourself. uh but under the hood this means that uh this distributed set of MPC operators each holding a small share uh is able to produce this valid signature based on your request on near without being able to independently

76. 32:32

    produce a signature and stealing your money which is I think is like a very very critical point which is also the reason why we want to have more operators here why we want to pack those nodes into trusted execution environment so that operator can't even extract their share in the first place and so on.

77. 32:55

    That was great. Do you want to take RA's question? Yes, I just question. Yep, I saw that they are coming up on my side now. I think they're just more note comments previously and I'm used to on the live streams I participated with the community having a flow of comments and questions. So, um, yeah. So, to clarify on this, there is an trailing 180day average computation with a floor price of $150 and a maximum price of $3 near.

78. 33:23

    So that we guarantee the floor and the cap on the incentive system, but ultimately the actual calculation will say what is the trailing daily close zero UTC of NEO based on Binance USDT pair. What's the average across that period of time? That is the basis to compute the number of near that is distributed. If that average falls below the floor, the floor is enforced. If that average is above the cap, the cap is enforced.

79. 33:58

    I think this one's best directed to you, Anton, but the privacy workstream is the one I'm most excited about personally. Um, could you read the question? And I'm trying to understand where do I where can I see them? Uh it says what future use cases can we expect from the MPC nodes besides chain signatures?

80. 34:17

    Oh um actually a few. So I'd probably start with like something that is possible today and which is which represents a potentially a hidden massive uh use case that is already there. um since like in in the way I described there is a way to for for each near account to derive an infinite num amount of of keys and to do so you don't even need to to perform any transaction near so today for example

81. 34:44

    let's say I want to put some bitcoin aside without anybody knowing what what that is and I just derive that address and just put my bitcoin there nobody knows anything there's like nothing happening on near it's just something on bitcoin happened somebody transferred some amount to some address and the fact that that address is controlled by my near account is pretty much impossible to figure out because I derive that key

82. 35:08

    myself and there's like infinite number of of of potential keys derived and there's like millions of accounts on near in place but at some point when I want to use it I can kind of craft a transaction get the signature on near and then it moves so this is kind of um uh this is a flaw that is there in in the way we account for the um value of assets that's like protected by chain

83. 35:31

    signatures because it's impossible to actually see unless people start moving their assets. But there is potentially this this kind of privacy case that is already in use. As of the future work, um we're approaching we're like almost done with implementing the following thing. Uh confirming this status of a transaction on a foreign chain.

84. 35:54

    Essentially if uh something happened let's say on Salana um you can um get the transaction hash some events and so on but on near you can't easily say that like or validate that that transaction was correct some tokens were transferred something happened um which is usually solved by various uh projects like wormhole and so on uh which have their own pros and cons and we can also introduce the same thing into into the MPC network which basically checks the

85. 36:23

    status of the transaction on the foreign chain and then let's say uh we have a network of like 20 operators and they need 15 to produce a valid signature that means if 15 operators check the status of a transaction on Salana and agree that this transaction has happened in this very specific uh way they will just uh sign this and then they will be able to post it on near and then it means every contract on near will be able to also validate that and use it

86. 36:49

    for some purpose. It means bridges can use that. It means if you deposit on Salana your memecoin into a specific bridge contract then there is a like a a way for the bridge uh site on near to to know that this has happened and to mint your like tokens on the near side and to do like to perform some some action on top of this move it to intense and swap it and and whatnot. So this is uh basically something that we call confirming like reading foreign chain data. So that's that's one of the cases.

87. 37:23

    That's an immediate thing that we're pretty much uh completed the development already. Um then there are off-chain authorization cases. As of now, the only way for you to request a signature uh is onchain. So if you want to sign something, you have to perform a transaction on Neo. You have to call that sign function on the MPC contract, provide the payload and then will be signed, which is I mean is good um for a lot of cases like bridging. It's not great for anything like uh for for

88. 37:52

    wallet use cases for example or uh things like authentication uh on a website. You don't want to run a transaction every time you authenticate into your email. Um so there is actually a design where we basically can say if your contract has a specific view call that is like is signature authorized or something like this then you can just request this completely offchain. You can come to some RPC node, provide some input with some signatures and so on.

89. 38:23

    Then MPC operators will look at that will use your contract code to validate whether this this specific payload should be signed on your behalf or not. And if yes, they will sign and uh like return the signature to you. All of this happening completely offchain. The authorization to produce this signature is onchain. That's like the state that is controlled by your near account. But everything else happens offchain which means it's actually much faster and

90. 38:50

    which means it's also cheaper and which allows you to to use it in like cross multi-chain wallets or in the setups where you you do like I don't know email authorization like website authentication and whatnot. Um yeah, these are like the immediate things that that we're working on and I think these two add very powerful primitives on like that that I I expect developers to come

91. 39:12

    up with very creative ways of using that beyond what we imagine uh today. Okay. Should we um close the call with some um experience uh you maybe want to share about setting up this proposal and bringing it to vote? Uh know House of Stake is brand new. We've launched in October. Um what would you recommend other proposal authors if they'd like to come up with a proposal? How to prepare

92. 40:02

    it? How to bring it to vote cell Kendall? Yeah, I mean that what what I'll say is despite being relatively new uh from an organization and execution perspective, I think the team on the House of State side was equally if not more wellprepared than we were on our side and the key kind of long poles in the tent were running down and comparing you know the cost economic analysis that we had derived from firsthand implementation of a node on test net

93. 40:30

    with you know the experience that Anton was describing here from the near one team in terms of host ing provider selection, line of sight to future TE support and things of that matter that really allowed us to deliver a second iteration. Um, I think Clauss will laugh. I struggled with the type form structure to actually get the proposal live in the initial format. So, that was a pain point on my side, but something that he helped me

94. 40:54

    through. Um, and then I think from a from an organization and execution perspective, things went quite smoothly. I will joke that I spent a lot of time during a family vacation in the comment section of the forum. So in the future if we put forward another proposal, I will not do that prior to trying to go away with my family. Um but overall I think we've reached a key milestone

95. 41:15

    through proper discussion in both the forum and then hopefully in this conversation today as well. Um and we ultimately will be advancing the proposal in its current format to an onchain voting process. And I'll say it again as I've said in the forum as well as to the previous community call that we do intend on voting on this proposal using 500k near and locking that into the house of stake system from our balance sheet. We feel that's an

96. 41:40

    appropriate size. That does not sway the vote. We do intend on voting on future proposals and scaling with the system over time. Um and I'd thank the Agora team for delivering on the technical execution path to support Fireblocks to enable us to do that. So overall team effort to get to this point. A lot of work to do to get this passed and ultimately implemented, but I'm confident that based on the back and forth and conversations that we've had in the community over the past two to

97. 42:06

    three weeks that we will get there. And this will also be a major milestone for House of St. you know, the first kind of flagship economic proposal through a decentralized governance system that has learned from the successes and failures of the market over time and designed a new approach that leverages both token voting as well as knowledgebased contributions. So that's that's kind of my uh my TL well that was a long form so I can't say TLDDR. That's my point of view on on the House of State process.

98. 42:42

    I guess just anything to add or a candle. Yeah, s as he's done this whole time has done an incredible job of of summarizing everything um and laying it out there. I think the only thing I'll add is just that um yeah the you know the one team has done an amazing job of delivering uh an incredible piece of technology here. Uh it's a very complex system. Uh one that you [snorts] know there was a lot of work that had to go into it to get it to the point it is now

99. 43:06

    where it's like very safely able to you know be used in and has been used now for quite some time and some of the most important production systems in the near ecosystem. Um it's a real key differentiator and I think this is a super important step uh and like progression to you know really enshrining it as as that core infrastructure. Um so you know please get engaged in the form if there's any other details that you need but uh this

100. 43:30

     is definitely very important and also yeah and as Sal said a very exciting milestone uh for all those groups and also just for near and the near ecosystem in general. [snorts] Yeah I'll say I want to acknowledge uh cell Kendall Anton and it's been a pleasure working with you to get this proposal ready. It is a learning journey to you know prepare in a format that works for decentralized governance and get it ready get it vote ready uh is a

101. 43:59

     is a certain kind of standard of clarity and specificity so that everybody can you know track and understand it and also want to acknowledge the the delegates and the token holders who are showing up on the forum um deeply engaged you know probably spending hours uh reading um line by line you know going through all of these kind of details so that's one of the the benefits of rather than doing something, you know, behind closed doors or in a

102. 44:23

     centralized fashion, you've got this collective intelligence, you know, these hundreds of people that are showing up uh and wanting to contribute in different ways, which is a a beautiful thing to see. Yeah. Okay, let's close the call with a call to action. Uh Aussie, if you can bring up my slides.

103. 44:47

     Yeah, this is the link to the proposal. So, check out the proposal at houseofstake uh.orgproposals lock your near today at houseofstake.org or assets receive veneer and delegate. Keep in mind before February 5. So currently we are in this process of forum discussion.

104. 45:10

     The screening committee will review the proposal and once um this is signed off and activated to vote. A snapshot is going to be taken. So have your say lock your near today latest before February 5th and participate in the voting and make a difference for MPC node infrastructure financing.

105. 45:33

     Thanks everyone for coming joining this AMA um and looking forward to the voting. Just just to clarify around when you said a snapshot will be taken. Um you have to get your veneer locked in before February 5th when it goes up to vote um and then that's the amount that you can vote with in the next 14 days. So if you try to add more you know um near and var uh once the vote is live then that will not show up you know that you can vote with. So um you got a couple of days to to get your um your near locked.

106. 46:10

     Thank you. All right. Thanks everyone.