Leased Proof of Stake

Description

Gleb Kostarev:

"In classic PoS, holders with small balances are unlikely to stake a block — just as small miners with low hashrate are unlikely to mine a block in bitcoin. It may be many years before a small holder is lucky enough to generate a block. This means that many holders with low balances don’t run a node, and leave maintaining the network to a limited number of larger players. Since network security is better when there are more participants, it is important to incentivise these smaller holders to take part.

LPoS achieves this by allowing holders to lease their balances to staking nodes. The leased funds remain in the full control of the holder, and can be moved or spent at any time (at which point the lease ends). Leased coins increase the ‘weight’ of the staking node, increasing its chances of being allowed to add a block of transactions to the blockchain. Any rewards received are shared proportionally with the leasers. This is the approach taken by Waves." (https://blog.wavesplatform.com/review-of-blockchain-consensus-mechanisms-f575afae38f2)