A delegation contract is an agreement that allows one party to delegate or assign their rights or responsibilities to another party. In the context of blockchain and cryptocurrencies, delegation often involves a token holder transferring their voting rights or staking power to another participant.This process is commonly seen in proof-of-stake networks, where holders can “delegate” their tokens to a validator or a staking pool. By doing this, the token holder can earn rewards without needing to actively run a node or participate in the validation process. The validator, in turn, uses the combined power of all delegated tokens to help secure the network and validate transactions.Delegation contracts are typically built using smart contracts, ensuring transparency and trust. They specify the terms of the delegation, including the duration and any fees associated with the process. This mechanism not only enhances security through increased network participation but also allows token holders to earn passive income by leveraging their assets effectively.