# DPoS Validators

DPoS (Delegated Proof of Stake) Validators actively validate the network and participate in block production. They have the **most opportunities and flexibility** in Mosaic Chain.

**What makes DPoS Validators unique:**

* ✅ Stake via their **Validator NFT's nominal value**
* ✅ **Additionally stake MOS coins**
* ✅ **Receive Delegator NFT stakes** from delegators
* ✅ **Receive MOS coin stakes** from delegators
* ✅ Offer their validation services to delegators **for a commission**

DPoS Validators compete for delegations by offering attractive commission rates and earn additional income from commission fees on top of their own block rewards.

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### **Requirements to Become a DPoS Validator**

To participate as a DPoS Validator, you must:

1. **Own and bind a DPoS Validator NFT** - Grants permission to validate and receive delegations
2. **Run a validator node** - Using Validator OS (plug-and-play system)
3. **Maintain uptime** - Keep your node online and synced 24/7
4. **Set commission rate** - Minimum 1%
5. **Set minimum staking period** - For delegators (global minimum: 28 days / 672 sessions)
6. **Be selected by the subset algorithm** - \~200 validators are randomly selected each session (1 hour)

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### **DPoS Validator NFTs**

The **DPoS Validator NFT** represents both your permission to validate and your base stake.

**Key features:**

* **Nominal value** - The NFT's nominal value is your base stake (subject to slashing)
* **Transferable** - Can be sold or transferred to another account
* **Binding required** - Must be bound to your account to participate
* **Unbinding conditions** - Can only unbind if validator is chilled, not active, and all staking contracts have ended

Unlike PoS Validators, DPoS Validators can add MOS coins to their stake and receive delegations from stakers.

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### **How Staking Works**

**Your own stake:**

* Stake via your **Validator NFT's nominal value**
* Additionally stake **MOS coins**

**Delegated stake:**

* Delegators choose to stake with you
* They can stake **MOS coins**
* They can stake **Delegator NFTs**

**Total staking power = Validator NFT nominal value + own MOS coins + all delegated stakes**

The more competitive your commission rate and the better your performance, the more delegators will choose to stake with you.

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### **Delegations**

Delegators choose which validators to stake with, increasing your total staking power and earning potential.

#### **What Delegators Can Stake**

**1. MOS Coins**

* Delegators stake liquid MOS coins to your validator
* Most common form of delegation
* No limit on the number of MOS coin delegations (up to contract limit)

**2. Delegator NFTs**

* Delegators stake their Delegator NFTs (with nominal values)
* Represents a fixed amount of staked value

#### **Validator Limits**

* **Max 1,000 staking contracts** per validator
* **Max 5% of total supply** staked per validator

#### **Staking Contracts**

Each delegation creates a staking contract with:

* **Staked amount** (MOS coins or Delegator NFT nominal value)
* **Minimum staking period** (set by you, global minimum: 28 days / 672 sessions)
* **Your commission rate** (locked for the duration of the contract)

**Commission changes:**

* Only apply to **new staking contracts**
* Existing contracts keep their original commission rate
* Announce changes in advance to maintain trust

**Minimum staking amount:** 50 MOS (global minimum)

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### **Commission & Competitive Dynamics**

DPoS Validators set their own commission rates, creating a competitive marketplace for delegations.

#### **How Commission Works**

**Commission rate:**

* **Minimum: 1%** (global minimum)
* You decide your rate (e.g., 5%, 10%, 20%)
* Applied only to delegated stakes (not your own stake)

**Example:**

* Delegated stakes earn 1,000 MOS in block rewards
* Your commission: 5% (50 MOS goes to you)
* Remaining: 950 MOS distributed to delegators proportionally

#### **The Competitive Marketplace**

DPoS Validators compete for delegators' trust and stakes.

**Lower commission:**

* ✅ More attractive to delegators
* ✅ Higher chance of receiving delegations
* ✅ Larger total staking power
* ❌ Lower earnings per MOS delegated

**Higher commission:**

* ✅ Higher earnings per MOS delegated
* ❌ Less attractive to delegators
* ❌ Harder to compete for delegations
* ❌ Smaller total staking power

**Finding your edge:**

* Research competitor commission rates
* Build reputation through consistent uptime
* Maintain transparent communication
* Demonstrate long-term reliability
* Adjust rates strategically based on market demand

**Remember:** Delegators can stake with multiple validators, so even with higher commission, excellent performance can still attract stakes.

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### **Rewards**

DPoS Validators earn rewards from three sources:

#### **1. Block Rewards**

* Newly minted MOS coins (calculated via expansion formula)
* Distributed at the end of each session to active validators
* 20% goes to the Treasury
* 80% distributed proportionally to validators based on total stake

#### **2. Transaction Fees**

* **50% of transaction fees** go to the block producer
* **100% of tips** go to the block producer
* **40% of fees are burnt** (removed from circulation)
* **10% of fees go to the Treasury**

#### **3. Commission from Delegators**

* Earn commission on all delegated stakes
* Commission rate set by you (minimum 1%)
* Applied only to delegators' rewards, not your own stake

**Reward distribution:**

* Rewards are distributed at the end of each **session** (1 hour ≈ 600 blocks)
* Only **active validators** (selected for that session) earn rewards
* Waiting validators earn nothing during that session

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### **Slashing & Auto-Chilling**

DPoS Validators can be slashed for poor behavior or downtime. **This affects both you and your delegators.**

#### **Slashing**

**What gets slashed:**

* **Your Validator NFT's nominal value** (0.1% per slashing event)
* **Your staked MOS coins** (0.1% per slashing event)
* **All delegated stakes** (0.1% per slashing event - delegators are slashed proportionally)

#### **Auto-Chilling**

Validators are automatically removed from the active set (chilled) if:

1. **Slashed in two consecutive sessions**
2. **Validator NFT's nominal value drops below 80% of its initial value**

Learn more about [Slashing and Auto-chilling!](https://docs.mosaicgalaxy.io/documentation/mosaic-chain/architecture-and-technology/slashing-and-chilling)