Consensus (DPoS)
Mosaic Chain uses a custom Delegated Proof of Stake (DPoS) consensus mechanism. It's efficient, cost-effective, and sustainable—and it works differently from traditional DPoS systems. It is a bit similar to Polkadot's nominated proof-of-stake scheme. Here's how it works.
Why Consensus Matters
Consensus mechanisms are essential to blockchain networks. They ensure everyone agrees on what's valid, who can produce blocks, and how the network stays secure.
Mosaic Chain uses DPoS instead of Proof of Work (which requires massive computational power) or traditional Proof of Stake (which can be inefficient). DPoS balances decentralization, security, and performance.
The Actors: Validators and Delegators
Validators
A validator is an active participant in block production.
Validators:
Run full validator nodes on Mosaic Chain hardware
Produce new blocks every 6 seconds
Earn MOS coins as staking rewards (from block rewards and transaction fees)
Redistribute rewards to delegators who backed them
Must bind a Validator NFT (PoS or DPoS) to participate in block production
Validator rights are represented by NFTs—they're transferable and sellable, democratizing the right to validate on Mosaic Chain.
In Polkadot terminology, Mosaic Chain validators are technically collators because they collect and batch transactions before sending them to Polkadot's relay chain for finalization.
Delegators
Delegators are passive participants who help secure Mosaic Chain by delegating their capital to DPoS validators. They earn staking rewards without running validator infrastructure. By delegating their stake to DPoS validators, delegators participate in block production and earn rewards (and slashing) proportional to their contribution—without the technical overhead of running a node.
How Delegators Participate:
Delegators participate by staking MOS coins and/or Delegator NFTs to DPoS validators.
Learn more on the Staking → page.
Validator Subset Selection Algorithm
Here's where Mosaic Chain's DPoS gets interesting.
Traditional DPoS systems require tons of validators to maintain decentralization. But more validators means slower networks—peer-to-peer connections become difficult, and computational overhead grows exponentially.
Mosaic Chain solved this with the Validator Subset Selection Algorithm.
How it works:
Mosaic Chain has 2,500+ validators participating in consensus (when fully onboarded)
Each session (1 hour = ~600 blocks), approximately 200 validators are randomly selected into the active set
These active validators produce blocks and earn rewards
Remaining validators stay in waiting status, ready for the next session
Validator Statuses:
Active
Elected into the active set for this session. Producing blocks and earning rewards.
Waiting
Online and participating in consensus, but not producing blocks yet. Waiting to be elected.
Selected
The algorithm announced this validator will be elected into the active set in the next session.
Chilled
Offline and not participating. Can be voluntary (validator chose to go offline) or automatic (auto-chilling triggered by slashing).
The Benefit:
By randomly selecting ~200 validators per session instead of requiring thousands, Mosaic Chain maintains:
✅ Fast block production (6-second blocks)
✅ True decentralization (all validators get a fair chance)
✅ Network efficiency (no exponential computational overhead)
Multiple Validator Selection (Unique to Mosaic Chain)
Here’s a key difference from many traditional DPoS systems:
In some DPoS blockchains, each delegator can stake with only one validator at a time, which can concentrate voting power and increase centralization risk.
Mosaic Chain takes a more flexible approach — delegators can distribute their stake across multiple validators simultaneously.
Since Mosaic’s active validator set rotates every session, delegators earn rewards only when their chosen validators are active. By spreading their stake, delegators can smooth out their earnings and help secure the network more evenly.
Why this matters:
Recommended strategy:
Distribute MOS stakes to multiple validators
Delegate Delegator NFTs to multiple validators
Diversify to reduce slashing risk
If one validator gets slashed, only the amount staked with that validator is affected—not your total assets
Staking Rewards & Commission
Validators earn rewards by producing blocks. These rewards come from:
Block rewards - Newly minted MOS coins (calculated via expansion formula)
Transaction fees - Split between validators and the treasury
Validators share rewards with delegators proportional to their stake, minus a commission (minimum 1% set by the validator).
Transaction fee split:
40% - Burnt (removed from circulation)
50% - Goes to the validator who produces the block
10% - Goes to the Mosaic Treasury
Tips (anything on top of the mandatory fee) go 100% to the validator.
Staking Contracts
When delegators stake with validators, they create staking contracts with:
Staked amount - MOS coins or NFT nominal value
Minimum staking period - Global minimum: 28 days (672 sessions)
Commission rate - Set by validator (minimum 1%)
After the minimum staking period ends, delegators can unstake (nearly instant, 1 session processing time).
Learn more on the Staking → page.
Slashing: Penalties for Misbehavior
If a validator misbehaves (goes offline, acts maliciously, etc.), it gets slashed—a percentage of staked assets is removed and sent to the Mosaic Treasury.
Slash Amount
Each slashing event removes 0.1% of the user's stake.
What Gets Slashed:
Validator MOS coins - Reduced by 0.1% of stake
Validator NFT nominal value - Reduced by 0.1%
Delegator stakes - Proportionally reduced if their validator is slashed
Delegator NFT nominal values - Proportionally reduced
Auto-Chilling Protection
If a validator is slashed in two consecutive sessions, auto-chilling is triggered automatically. The validator is removed from the normal validator set to protect delegators from further losses.
Threshold: If a Validator NFT's nominal value drops below 80% of its initial value, the validator loses block production rights until they top up the NFT.
Validator Slacking Period
When a validator is chilled for more than a 72-session (3-day) slacking period, delegators can exit without penalty (even before the minimum staking period ends). This protects delegators from validators who repeatedly misbehave.
Learn more on the Slashing & Auto-Chilling → page.
Why This Design Works
Mosaic Chain's DPoS combines:
✅ Large validator set (2,000+) for true decentralization
✅ Efficient active set (~200 per session) for fast blocks
✅ Multiple validator selection for steady rewards and reduced risk
✅ NFT-based participation for transparent, transferable rights
✅ Auto-chilling protection for safety
✅ Fair reward distribution with transparent slashing (0.1% per event)
✅ Treasury funding from block rewards and transaction fees
The result: A consensus mechanism that's decentralized, secure, efficient, and fair.
Ready to learn more?
Actors (Validators and Delegators) → - Learn about the three participant types
NFT-Based Validator System → - Understand the NFT technology
Staking → - Detailed staking mechanics and rewards
Slashing & Auto-Chilling → - Penalties and protections
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