Delegated Proof-of-Stake Definition

Delegated proof-of-stake, often shortened to DPoS, is a consensus method where token holders vote for a small set of trusted participants to create blocks and verify transactions for the network. The goal is to keep security while speeding things up and cutting energy use compared with heavy mining setups. 

Background and origin

DPoS was introduced by Daniel Larimer in 2014. Early adopters included BitShares, Steem, Ark, and Lisk. These projects showcased the core idea of electing a limited group of block producers through on-chain voting. 

Core idea

Instead of letting anyone compete to add blocks, a DPoS chain asks holders to vote for delegates, also called witnesses or block producers. These delegates take turns producing blocks and keeping the ledger in sync. Voting power usually tracks how many tokens a voter stakes, and votes can be changed at any time, which adds constant pressure on delegates to perform.

Roles in a DPoS network

• Delegators or voters: everyday users who lock or “stake” tokens and cast votes for delegates. Their stake weight typically determines the impact of each vote.
• Delegates or witnesses: the elected block producers. Networks cap this group to a small number, often on the order of a few dozen to around one hundred, to keep block times short. Some designs also mention additional validators who check blocks produced by witnesses.

Voting and governance

DPoS adds a built-in governance loop. Token holders can promote new delegates or remove poor performers through regular voting. Because elections are continuous, delegates are incentivized to keep high uptime, follow the protocol, and communicate with the community. Many systems also let elected actors propose technical changes, such as block size adjustments, for voters to consider.

Rewards and incentives

Block producers receive rewards for creating blocks. In many implementations, they share a portion of these rewards with the voters who supported them, which encourages active participation and competition among delegates.

Performance and resource use

By limiting block production to a small elected set, DPoS chains can reach higher transaction throughput and faster confirmation times than many PoW and some traditional PoS networks. Because they do not require energy-intensive mining, they are generally more resource-efficient.

Security model and trade-offs

Security relies on economic stakes and reputation rather than raw hashing power. If a delegate misbehaves or underperforms, voters can quickly replace them. At the same time, the smaller producer set introduces governance risks such as concentration of power or voter apathy, which projects try to offset with transparent proposals and frequent elections. Some observers note that the predictable, turn-based block schedule looks closer to a proof-of-authority style than to open competition.

Examples and use

Well-known networks that have used DPoS include BitShares, Steem, Ark, and Lisk. Each adapts voting rules, reward sharing, and the number of producers to suit its goals, but all follow the same basic pattern of staking, electing, and rotating block production.