PoS Validators

PoS (Proof of Stake) Validators are solo validators who secure Mosaic Chain by running validator nodes and producing blocks. They stake exclusively via their Validator NFT's nominal value and operate independently without accepting delegations.


What PoS Validators Do

PoS Validators are active participants in Mosaic Chain's consensus mechanism.

Core responsibilities:

  • ✅ Run full validator nodes

  • ✅ Produce new blocks (if selected by the subset algorithm)

  • ✅ Validate transactions and maintain network security

  • ✅ Stake via their Validator NFT's nominal value

  • ✅ Earn block rewards and transaction fees

In Polkadot terms:

  • Mosaic validators are technically collators (they collect transactions and produce blocks for the Polkadot relay chain to finalize)

  • However, within Mosaic Chain's internal consensus, they function as validators


How Staking Works for PoS Validators

PoS Validators have a unique staking model:

Staking:

  • ✅ Stake only via their Validator NFT's nominal value

  • Cannot stake MOS coins

  • Cannot accept delegations from others

Why this limitation?

  • PoS Validators are designed for solo operation

  • Simpler setup with no delegation management

  • Full control over their own stake and rewards


Requirements to Become a PoS Validator

To participate as a PoS Validator, you must:

  1. Own and bind a PoS Validator NFT - Grants permission to validate and represents your stake

  2. Run a validator node - Using Validator OS (plug-and-play system)

  3. Maintain uptime - Keep your node online and synced 24/7

  4. Be selected by the subset algorithm - ~200 validators are randomly selected each session (1 hour)


PoS Validator NFTs

The PoS Validator NFT represents both your permission to validate and your stake.

Key features:

  • Nominal value - The NFT's nominal value is your 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 the staking contract has ended

Your stake = Your NFT's nominal value

Unlike DPoS Validators who can add MOS coins to their stake, PoS Validators stake exclusively through their NFT's nominal value.


Rewards

PoS Validators earn rewards from two sources:

1. Block Rewards

  • Newly minted MOS coins (calculated via expansion formula)

  • Distributed at the end of each session to active validators

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

Reward distribution:

  • Rewards are distributed at the end of each session (1 hour ≈ 600 blocks)

  • Only active validators (selected for that session) earn rewards

  • PoS Validators keep 100% of their rewards (no commission sharing)


Slashing & Auto-Chilling

PoS Validators can be slashed for poor behavior or downtime.

Slashing

What gets slashed:

  • Validator NFT's nominal value (0.1% of nominal value per slashing event)

Slashing triggers:

  • Extended downtime

  • Double-signing blocks

  • Other malicious behavior

Auto-Chilling

Validators are automatically removed from the active set if:

  1. Slashed in two consecutive sessions

  2. Validator NFT's nominal value drops below 80% of its initial value

Recovery:

  • Validators can unchill manually

  • Validators must top up their NFT's nominal value to resume validation if it has dropped below 80% of its initial value

  • After topping up, they can rejoin the waiting set


Learn more:

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