Delegation Protocol

Understand essential crypto terminology as it relates to Delivery Networks. This guide simplifies key concepts for effective communication in the blockchain landscape.

A delegation protocol allows token holders to delegate their voting power or staking rights to another participant. This process enables users who may not have the time or expertise to manage their tokens directly to still participate in network governance or earn rewards.In many Proof of Stake (PoS) systems, users can vote on proposals or validate transactions. By using a delegation protocol, they can choose someone they trust to act on their behalf. This helps increase participation by empowering those who are less active to have a say in the network’s decisions.The delegator usually retains ownership of their tokens and can revoke the delegation at any time. This flexibility encourages a broader range of users to engage in the ecosystem, enhancing its security and decentralization.Overall, delegation protocols strike a balance between active participation and ease of use, facilitating a more inclusive environment for all token holders.

Latest Resources and Blogs