IPoS (Liquid Proof of Stake) is a blockchain consensus method developed to increase liquidity and user engagement in networks that use the Proof of Stake (PoS) mechanism. IPoS (Liquid Proof of Stake) is a variation of the Proof of Stake (PoS) consensus mechanism that aims to address the issue of lack of liquidity and user engagement in traditional PoS networks. In the regular PoS model, validators must stake a certain amount of coins to participate in the block validation process and get rewarded. However, the staked coins become illiquid during the validation period.

With IPoS, validators can delegate their staked coins to other validators without losing control of them. This is achieved by using derivative tokens called “liquid tokens” or “ownership tokens”. The primary validator holds the original tokens, while the liquid tokens are held by delegated validators or regular users. These liquid tokens can be freely traded, while the primary validators keep their native tokens at stake in the validation process. The rewards received from validation are distributed proportionally to the liquid token holders.