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xDai will transition to a new type of dPOS consensus called POSDAO.

POSDAO Whitepaper

{% hint style="info" %} A summary and pdf version of the current whitepaper is located here. Note that the model is undergoing some substantial fine-tuning, and we will release a new version of the paper soon. {% endhint %}

Barinov, I., Arasev, V., Fackler, A., Komendantskiy, V., Gross, A., Kolotov, A. and Isakova, D. POSDAO: Proof of Stake Decentralized Autonomous Organization (April 29, 2019). Available at SSRN: or

xDai validators are currently selected organizations from the Ethereum community. They provide consensus as a service to the xDai community, and do not receive meaningful rewards (they receive transaction fees, which are fractions of a cent). This is not a sustainable model, and does not provide the opportunity for the greater xDai community to participate in the consensus process.

We will be shifting to POSDAO consensus shortly, a new delegated Proof of Stake protocol. POSDAO will introduce a staking token, called STAKE, as well as a new consensus model where individuals who own STAKE may become validators or may delegate their stake on current validators in order to protect the chain. Validators and delegators will receive rewards in exchange for providing STAKE.

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