Understanding Diversified Proof of Stake
Diversified Proof of Stake allows network consensus to be reached by validators that stake a basket of assets. This removes the risk of the network being owned by a large controller of a single asset. The probability of network attack reduces exponentially with each new asset class needed to maintain network control.
The consensus can approve additional assets that can participate in network security, but the genesis stake in network security will be a basket of LSDs approved by the Tenet Foundation.
Naturally, TENET is a key part of the basket.
The most important achievement of this model is its ability to enhance network security by relying on the shared market strength and difficulty of mass control of a robust basket of assets. Any network attacker would need significant market share in all of these assets.
This allows Tenet network – from its initiation – to be the most secure blockchain network. It benefits from the combined security of a basket of assets, which when put together are more secure than any individual asset in the basket, including ETH.