> ## Documentation Index
> Fetch the complete documentation index at: https://docs.theblockchainlibrary.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Delegated Proof of Stake

> A proof-of-stake model where token holders elect or delegate stake to a limited set of block producers or validators.

# Delegated Proof of Stake

A proof-of-stake model where token holders elect or delegate stake to a limited set of block producers or validators.

## Definition

A proof-of-stake model where token holders elect or delegate stake to a limited set of block producers or validators.

## Why it matters

Consensus concepts explain how independent nodes agree on one shared history without a central coordinator.

## How it works

Token holders stake their coins to vote for delegates or 'block producers.' A small number of these producers are chosen to create blocks sequentially. If a producer misses blocks or acts maliciously, the community votes them out, and their replacement takes over, ensuring the network remains secure and responsive.

## Real-world example

EOS and BitShares utilize DPoS to achieve high transaction throughput and near-instant confirmations.

## Advantages

* Very fast transaction times
* Energy efficient operation
* High scalability potential

## Limitations

* Increased risk of centralization
* Voter apathy can impact security
* Potential for delegate collusion

## Common misconceptions

* People assume DPoS is the same as Proof of Stake, ignoring the crucial role of elected representatives. It is often incorrectly labeled as 'not decentralized' without considering the democratic nature of the voting process.

## Related knowledge

* [Block Producer](/generated/v2/glossary/block-producer) — term
* [Finality](/generated/v2/glossary/finality) — term
* [Proof of Stake](/generated/v2/books/proof-of-stake) — term
* [Validator](/generated/v2/glossary/validator) — term

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**Canonical knowledge ID:** `glossary:delegated-proof-of-stake`