Sequentia docs

3.3. Market-driven governance

Sequentia block creators must have a direct stake in the blockchain, and their role is open to market competition in a public and transparent way.
Any blockchain network is exposed to a security risk if the entities with governance power do not have a significant stake in the chain. The selection of entities with the power to issue blocks must be open to the market with publicly transparent economic incentives to participate. For example, in a Proof of Work system, miners have a considerable investment in the hardware and, in general, in their business model, from the most efficient way to supply energy to the vast amount of capital required for the set-up and maintenance of the business (including human capital, effort, aspirations). All this capital represents a “stake” in the chain.
Sequentia blocks are proposed based on a PoS selection algorithm that weights the stake of each participant (in terms of SEQ tokens at stake) to determine the right to issue a valid block. A PoS selection is chosen to avoid those security issues any new PoW faces at the genesis, being under the threat of malicious attackers borrowing some hashrate power. Also, it prevents the perception of being an alternative or competitor to Bitcoin. SEQ tokens are not intended to have a monetary purpose.
Anyone staking at least 0.01% of the total token supply has a chance to be selected by the algorithm as a “network participant”. 0.01% of the total token supply corresponds to 40,000 SEQ tokens. Participants with SEQ tokens locked at stake earn network transaction fees from the blocks they produce; therefore, the value of SEQ tokens mirrors the actual usage of the blockchain.