Why Switch from PoS to DPoS Staking in 2025

Staking has become one of the most popular ways to earn from crypto. Instead of mining with machines, people just lock their tokens and earn rewards. That’s why you hear terms like “staking rewards” or “validator income” almost everywhere in blockchain news. Proof of Stake (PoS) was created to solve energy use and performance issues of older blockchains like Bitcoin. It made blockchain greener and faster. But over time, people started noticing some issues. The rich users with more tokens kept getting more rewards, while smaller stakers barely grew. This started to raise questions about fairness and centralization.

That’s where Delegated Proof of Stake (DPoS) came in. It maintains the same concept of staking but incorporates community voting and improved fairness. Instead of only the rich controlling block validation, everyone can vote for delegates who represent them. It’s faster, cheaper, and more democratic. Research from Elsevier’s Blockchain: Research and Applications shows, traditional PoS models tend to create wealth concentration over time (Leporati & Rovida, 2024). This means if you start small, your share gets smaller every year, which makes networks less open. DPoS helps stop that loop. If you’ve been staking in PoS and feel it’s slow, unfair, or centralized, it might be time to think about switching to DPoS staking.

ALSO READ: DPoS Voting Explained: How Does On-Chain Governance Work?

What Is Proof of Stake (PoS)?

Proof of Stake, or PoS, is a system where new blocks are made by people who lock their coins. Validators are not selected using large mining machines, but according to the amount of coins they possess. The greater your stakes, the greater the probability of getting the next block and a reward.

Such a system was developed to minimize the enormous energy wastage of Proof of Work (PoW) networks such as Bitcoin. PoS enabled the operation of blockchains at low electricity expenses. However, it too had its negative side, the rich get richer issue.

Under PoS, the big holders are continually reselected due to the fact that they hold a considerable amount of stakes. They receive more pay, their wallets swell, and then they are picked even more. Over time, wealth keeps moving to the same few validators. This creates something like a “validator monopoly,” where the same people control the chain. This issue is called the compounding effect, which describes how PoS validators can accumulate power and wealth much faster than small stakers. That’s not very good for decentralization or fairness.

So PoS is good for saving energy but not great at keeping power equal among users. That’s one big reason why DPoS was created later, to make the system fairer and faster.

What Is Delegated Proof of Stake (DPoS)?

Delegated Proof of Stake, or DPoS, is like an upgraded version of PoS. Rather than each staker being a validator, token users choose some number of delegates to create blocks. These representatives are the representatives of the community who are trusted.

Therefore, with tokens, there is no need to run a node or be online at all times. People simply vote and leave the work to others, and if the delegates perform well, they continue receiving votes. People can change them in the next round if they act unfairly. This makes DPoS highly more democratic; in addition, it introduces a system of voting that maintains power in balance and accountability in plain sight. Every user has a voice, no matter how small their stake. Some well-known DPoS networks are EOS, TRON, and Steem. They all use this voting system to maintain faster block times and more community control.

ALSO READ: Why DPoS-Based Tokens Are a Viable Option for Long-Term Investment?

DPoS is built to fix the problems that PoS faces with power imbalance. By letting token holders vote for delegates, it spreads control across the network instead of keeping it with the top wallets. It’s like turning a monopoly into a public election. DPoS also increases throughput and scalability, allowing blockchains to handle thousands of transactions per second (Nguyen et al. 2019), which is why it’s becoming the favorite choice for newer projects in 2025.

Key Differences Between PoS and DPoS

Both use staking, but how they handle control, fairness, and performance is very different. In PoS, block producers are picked mainly by wealth. It’s fast and low-cost, but slowly becomes centralized. In DPoS, the community selects a small team of delegates. These delegates are rotated, ranked, and monitored through on-chain voting. That keeps things transparent.

Another big difference is governance. PoS systems use stake-weighted decisions, where big holders dominate. DPoS uses democratic voting, where each user’s token gives them power to choose who leads. This brings better fairness and accountability. DPoS also wins in speed. Because it uses fewer validators, it can confirm blocks faster and with less communication delay. That’s why TRON and EOS reach transaction speeds that PoS chains can’t.

In short, PoS may look easier, but DPoS is built for long-term fairness. Studies from Security and Communication Networks (Ge et al., 2022) show that DPoS provides better resilience against validator monopolies and improves user trust through visible governance. So when people ask “PoS vs DPoS, which is better?”, the answer depends on what you want:

• If you want passive staking and don’t care about control, PoS is fine.
• But if you want a network that grows fairer, faster, and more decentralized over time, DPoS is the smarter move.

Why PoS Faces Centralization Problems

At first, Proof of Stake sounded like the perfect idea. No big machines, no energy waste, and easy rewards for everyone. But as time passed, many blockchain researchers noticed a big problem: centralization. In PoS, validators are chosen depending on how much they stake. That means if you already have a lot of coins, your chances of being picked again keep going up. Every time you’re picked, you get more rewards, and those rewards get added back into your stake. Slowly, you become almost impossible to beat.

This cycle is what researchers call the compounding effect (Leporati & Rovida, 2024). It’s simple math: those with big stakes keep growing faster, while small holders never catch up. The rich get richer, and new validators give up trying. Another study by Jensen et al. (2021) found that when this happens, control of the blockchain shifts toward a few top validators. Even if thousands of people stake tokens, real decision-making stays in the hands of maybe 10 or 20 entities.

ALSO READ: DPoS Explained: Pros and Cons of Delegated Proof of Stake in 5 Minutes

The scary part is that this also hurts governance. When a few validators control upgrades or votes, they can block proposals or push their own interests. That’s not what decentralization was supposed to be. The Gini Coefficient measures how uneven wealth is in a system. In PoS blockchains, the Gini value can get as high as 0.7 or 0.8, which economists call extreme inequality. A fair level is below 0.3.

That’s why many projects began exploring new consensus methods, and Delegated Proof of Stake emerged as one of the top solutions.

How DPoS Fixes the Fairness Problem

Delegated Proof of Stake tries to fix everything PoS got wrong about fairness. It gives power back to the people who own the tokens, not just the ones with the biggest bags. In DPoS, users vote for a group of trusted delegates. These delegates take turns validating blocks and keeping the network running. 

If they do a bad job or act dishonestly, token holders can remove their votes instantly and replace them. That keeps the system accountable. Unlike PoS, where wealth automatically increases your influence, DPoS uses reputation and voting power to decide who’s in charge. It’s not perfect, but it’s way more balanced.

DPoS also spreads rewards more evenly. In many networks, part of each block reward goes to the delegates, while another part goes to the people who voted for them. This creates a real partnership between validators and voters.

For example, in TRON’s Super Representative system, top delegates earn block rewards but must share a portion with the voters who supported them. This motivates users to stay active in governance instead of just staking and forgetting. As Ge et al. (2022) point out, DPoS promotes stability by balancing wealth, reputation, and voting influence, three things that make a blockchain fair and sustainable in the long term.

Benefits of Switching from PoS to DPoS Staking

1. Faster Block Times

DPoS systems use fewer delegates to confirm transactions, so the process is much faster. Networks like TRON and EOS can handle thousands of transactions per second, something normal PoS systems can’t achieve.

2. More Democratic Governance

In PoS, validators are picked automatically based on wealth. In DPoS, the community actually votes. It’s closer to democracy. Everyone has a say in who runs the blockchain.

3. Stronger Network Trust

Because voting is public, everything is visible on-chain. If a delegate misbehaves, users can vote them out immediately. That creates transparency and keeps the ecosystem honest.

4. Fairer Reward Sharing

Delegates share part of their earnings with voters. So even small token holders get paid for helping keep the system stable. It’s a fairer way to distribute wealth.

5. Better Security Through Accountability

DPoS blockchains can react quickly if something goes wrong. Because only a limited number of delegates handle block creation, it’s easier to identify and replace bad actors.

The best part is that DPoS doesn’t just reward big wallets, it rewards good behavior and active participation. That’s what blockchain was supposed to be about in the first place: a fair, open system for everyone.

Risks and Misunderstandings About DPoS

Nothing in crypto is perfect, and DPoS is no exception. Some people worry that DPoS could turn into a system where only a few delegates control everything. But that usually happens when users stop voting. If the community becomes inactive, delegates can collude or vote for themselves using hidden wallets. That’s why ongoing participation is key. The more users vote, the harder it is for corruption to grow.

Another misunderstanding is about vote buying. In some cases, powerful delegates offer rewards to get votes. But that’s not always bad; it’s similar to staking pools sharing profits. Still, it should be transparent and regulated by smart contracts. As Nguyen et al. (2019) explain, DPoS networks rely heavily on voter behavior. When people participate actively, the system stays healthy. When they don’t, it risks turning centralized again.

ALSO READ: How EOS Uses Delegated Proof of Stake (DPoS) to Handle High Transaction Volumes

When designed well, DPoS turns the blockchain into a living ecosystem, where every participant matters. You’re not just locking coins, you’re shaping how your network works.

Which Type of Staking Is Better for the Future?

The truth is, both systems have their own logic. But the world of blockchain is changing fast, and the one that adapts better will win. PoS was built to replace mining. It was great for energy saving and easier validation. But as networks got bigger, the gaps between big and small stakers became too wide. DPoS brings back equality through elections and shared control.

DPoS also matches the new trend of community-driven blockchains, where users vote, create proposals, and shape upgrades together. According to studies by Ge et al. (2022), DPoS blockchains are more resistant to validator monopolies because of this open structure.

So, for long-term stability, transparency, and fair wealth distribution, DPoS clearly looks like the better model. Many experts believe future blockchains will use hybrid systems, combining DPoS with AI and governance algorithms to make decision-making even smarter.

How to Switch from PoS to DPoS Staking (Step-by-Step Overview)

Switching from PoS to DPoS is not as hard as it sounds. Many networks are already planning upgrades to migrate from one system to another. Here’s what usually happens in that process.

Step 1: Proposal and Community Vote

First, the community proposes to change the consensus system. This step includes technical discussions, economic models, and community debates. Once it’s clear that DPoS will improve performance, users vote to approve the migration.

Step 2: Validator Transition

The old PoS validators are reviewed. Some become new delegates, while others can remain as voters or node operators. The transition keeps the old rewards fair but changes how they are distributed.

Step 3: Delegate Elections Begin

Once the system switches, the community starts electing delegates. Everyone who holds tokens can vote. The top delegates start validating blocks, while backup delegates stay ready in case of any failure.

Step 4: Reward Distribution Update

Rewards are now shared differently. Delegates receive a base reward and share a portion with their voters. This encourages more people to stay active and vote.

Step 5: Governance and Monitoring

Voting becomes part of regular governance. Some blockchains allow daily or weekly elections, keeping the system alive and democratic.

This kind of transition doesn’t just improve performance; it changes how users interact with the chain. Suddenly, every wallet becomes a voice, not just a balance.

Conclusion: Why DPoS Is the Next Step in Staking Evolution

Blockchain started with mining. Then it became staking. Now it’s becoming delegated staking, where every user can shape what happens next. Proof of Stake was a big milestone. It made crypto greener and simpler. But it also showed us that power can concentrate fast when wealth decides everything. DPoS fixes that by bringing people back into control.

In DPoS, fairness isn’t a dream; it’s built into the system. The network stays fast, governance stays open, and rewards stay balanced. When users vote, they don’t just earn, they help shape the blockchain’s direction. As Leporati & Rovida (2024) concluded in their research, systems that maintain wealth balance and fairness tend to last longer and keep user trust. That’s exactly what DPoS tries to do. So if you’re staking in PoS and wondering what’s next, DPoS is not just a new model; it’s the future of fair blockchain governance.

Frequently Asked Questions About Why You Should Switch to DPoS

What is the main difference between PoS and DPoS?

PoS lets anyone stake tokens to become a validator, while DPoS adds a voting system. In DPoS, users vote for trusted delegates who make new blocks. It’s faster and more democratic, because power is shared through community elections, not just based on who owns more tokens.

Why is DPoS considered fairer than PoS?

In PoS, big holders keep earning more and slowly take over control. DPoS fixes that by giving every token holder a vote. Delegates can be replaced anytime if they act unfairly, so power stays balanced and rewards are shared with the community.

Can any blockchain switch from PoS to DPoS?

Yes, but it needs a community vote and protocol upgrade. Developers must adjust how validators are selected and rewards are distributed. Projects like EOS and TRON already use DPoS successfully, and some PoS chains are testing hybrid models that include DPoS-style voting.

Is DPoS more secure than PoS?

In many cases, yes. DPoS uses fewer, well-known delegates that can be monitored easily. If a delegate acts dishonestly, voters can remove them quickly. That community control adds extra transparency and accountability, making it hard for one group to take over the network.

Glossary of Key Terms

Staking: Locking crypto tokens to help run a blockchain and earn rewards.

Validator: A node that confirms transactions and adds new blocks to the chain.

Delegate: An elected validator in DPoS systems chosen by community votes.

Governance: The process of making decisions on how a blockchain works.

Compounding Effect: When large stakers keep growing wealth faster in PoS systems.

Gini Coefficient: A number that shows how equally wealth is distributed (0 = fair, 1 = unfair).