In PoA, a validator is not required to hold a stake in the network. He or she is required, however, to have a known and verified identity. By staking this identity to secure the network in exchange for the block rewards, a validator is dis-incentivised to act maliciously or to collude with other validators. With on-chain governance in place, malicious actors can be removed and replaced. Existing legal anti-fraud guarantees are used to protect participants of the open network from malicious actions of validators.