> For the complete documentation index, see [llms.txt](https://starpower.gitbook.io/starpower-lite-paper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://starpower.gitbook.io/starpower-lite-paper/what-is-usdstar/transition-between-phases.md).

# Transition Between Phases

## **Phase 1: Proof of Connectivity**

* **Focus:** Rapid accumulation of users and nodes.
* **Incentives:** Based on maintaining an online connection.

## **Phase 2: Proof of Capacity**

* **Focus:** Engaging users to provide evidence of their energy capacity.
* **Incentives:** Based on maintaining an online connection and providing capacity proof.

## **Phase 3: Proof of Response**

* **Focus:** Active participation in demand response activities.
* **Incentives:** Based on actual participation and responsiveness to VPP signals.
* **Threshold:** Activated once the network reaches the required capacity for effective demand response.