Elrond employs a secure proof-of-stake consensus mechanism, in which nodes must stake their EGLD tokens to participate in the validation process. Each validator is given a rating score based on previous activity, which determines whether they are chosen. If a validator's rating falls too low, it will not be chosen and forced to pay fines. Validators can potentially be kicked off the network and have their stakes reduced if they consistently operate in a way that jeopardizes the network's integrity.
Validators are chosen at random in a fashion that cannot be predicted or adjusted based on prior validations.
Use of Native tokens in the ecosystem:
The eGold, or EGLD, the native token of Elrond, is utilized for network fees staking and rewarding validators.