NFT-Based Validator System
Mosaic Chain introduces a revolutionary approach to blockchain validation: NFTs grant permission rights AND provide stake through their nominal value. This makes validator rights transparent, transferable, and tradable—while keeping economic security tied to the NFT's value.
Permission + Stake: How It Works
Traditional blockchains lock validator rights to specific accounts or require massive capital to participate. Mosaic Chain uses NFTs as both permission and stake:
Validator NFTs = Permission + Base Stake
Grant the right to run a validator node and produce blocks
Have a nominal value that serves as your stake
Transferable and sellable on secondary markets
Subject to slashing (0.1% per event reduces nominal value)
MOS Coins = Optional Additional Stake (DPoS only)
DPoS Validators can stake MOS coins in addition to their NFT's nominal value
PoS Validators stake ONLY via their NFT's nominal value (cannot stake MOS coins)
Delegators stake MOS coins to DPoS validators
Key insight:
PoS Validators validate using ONLY their Validator NFT's nominal value
DPoS Validators can add MOS coins on top of their NFT's nominal value and accept delegations
Delegators stake MOS coins (and optionally Delegator NFTs) to DPoS validators
Two Types of Validator NFTs
PoS Validator NFT
Grants permission to validate solo without accepting delegations.
Characteristics:
✅ Stake only via the NFT's nominal value
❌ Cannot stake MOS coins
❌ Cannot accept delegations from others
✅ Keep 100% of rewards
✅ Simpler operation, full control
Best for: Independent operators who want solo validation
DPoS Validator NFT
Grants permission to validate and accept delegations from others.
Characteristics:
✅ Stake via the NFT's nominal value
✅ Additionally stake MOS coins
✅ Accept delegations (MOS coins + Delegator NFTs)
✅ Earn block rewards + commission from delegators
✅ Maximum flexibility and earning potential
Best for: Professional validators seeking to maximize staking power
Delegator NFTs (Optional for Stakers)
Delegator NFTs are optional assets that allow holders to stake their nominal value to DPoS validators.
Key features:
Nominal value - Represents a fixed MOS equivalent (e.g., 1,000 MOS)
One validator per NFT - Each Delegator NFT can only be staked to one validator at a time
Expiration period - Approximately 12-24 months of validity from binding
Transferable - Can be sold or transferred on secondary markets
Why use Delegator NFTs?
✅ Transferable staking rights
✅ Known expiration date (clear commitment timeline)
✅ Secondary market for staking positions
✅ Alternative to staking liquid MOS coins
Important: You don't need a Delegator NFT to stake. Anyone with MOS coins can stake directly to DPoS validators.
Binding & Unbinding NFTs
Binding a Validator NFT
When validators bind their Validator NFT:
✅ Commit to being online and producing blocks
✅ Participate in consensus and earn rewards
❌ Cannot sell or transfer the NFT while bound
Requirements to bind:
Own a Validator NFT (PoS or DPoS)
Run a validator node installed with Validator OS and maintain uptime
Unbinding a Validator NFT
Validators can unbind their NFT only if:
✅ Already chilled (voluntarily gone offline)
✅ Not selected into the current or upcoming active set
✅ All staking contracts have ended
Once unbound:
✅ NFT can be sold or transferred
❌ Cannot produce blocks or earn rewards until bound again
Binding a Delegator NFT
When delegators bind their Delegator NFT to a validator:
✅ Delegate the NFT's nominal value to that validator
✅ Accept the validator's commission rate
Expiry starts on first binding - The validity period begins when the NFT is first staked.
Unbinding a Delegator NFT
Delegator NFTs can be unbound:
✅ Manually - After the minimum staking period ends (28+ days)
✅ Automatically - When the NFT expires (after ~12-24 months)
After unbinding:
✅ NFT can be sold or transferred
❌ Expired NFTs cannot be re-staked
Why This Design Is Revolutionary
Mosaic Chain's NFT-based validator system offers unique advantages:
1. Democratizes Validation
Anyone can buy a Validator NFT and start validating
No need to be an early adopter or hold massive capital
Validator rights are accessible and transparent
2. Transparent and Verifiable
All NFTs are visible on-chain
Nominal values, expiration dates, and history are public
No hidden validator requirements
3. Enables Flexibility
PoS Validators for solo operators
DPoS Validators for delegation-seeking professionals
Delegator NFTs for time-limited staking commitments
Learn More
Understand the participants:
Actors (Validators & Delegators) → - Learn about the three participant types
Technical details:
Staking → - How staking works in detail
Slashing & Auto-Chilling → - Penalties and protections
Delegated Proof of Stake (DPoS) → - Consensus mechanism overview
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