Delegated Proof of Stake (DPoS)

In DPoS, token holders do not validate blocks directly. Instead, they vote with their staked tokens to elect a small number of delegates — typically 21 to 100 — who take turns producing blocks. This representative democracy model differs from standard Proof of Stake, where any staker can be selected to propose a block.

EOS, one of the earliest DPoS chains, uses 21 elected block producers and achieved 4,000 TPS at launch in 2018. Tron uses 27 Super Representatives. BNB Smart Chain (originally Binance Smart Chain) uses a DPoS variant with 21 active validators, which helped it achieve low fees but drew criticism for centralization — according to BNB Chain documentation, validators must be approved by Binance.

The advantages of DPoS are clear: fewer validators mean faster block times (often 0.5-2 seconds) and higher throughput. Block producers are accountable — underperformers can be voted out. The disadvantage is equally clear: a small validator set is easier to collude, censor, or capture through concentrated token holdings.

DPoS networks often develop political dynamics: vote buying, cartels among delegates, and voter apathy (low participation in elections). These governance challenges mirror real-world democratic systems and are an active area of research in mechanism design.