To participate in the pseudonym event, each person needs to both act as a relayer for the selfie-video hash (proof-of-commitment), and have their own selfie-video hash successfully relayed. This incentivizes that proof-of-commitment is generated for the every person in the NYM pool (people who hold the security token that prevent bot attacks. )
During the witness phase for proof-of-commitment, each person can select from 5 people (in sequence, with no knowledge about who the next person will be), relay three hashes, and also flag two scammers. The game theory is that you always gain from flagging a scammer, and you always gain from relaying an honest person.
To be verified for proof-of-commitment, you need to have three relayers, and to be flagged as a scammer, you need to have three flags, and to have successfully relayed others, you need to for three people in total have either relayed people that were verified (three relayers) or flagged people that were marked as scammers (three flags).
If every single person is honest, then once you get through person three in the sequence of 5 people that you will "audit" (cryptographically, no personal data), everyone will have been verified.
Subjective proofs vs objective proofs
So that the online pseudonym parties is pseudo-anonymous, a model with independent witness is used, instead of for example uploading the selfie-video hash on-state, which would provide objective proof or “consensus proof” and that is not preferable, since it removes plausibly deniability and opens up a market for selling people’s identities.