Delegator Rights

Understanding crypto terminology related to Democracy Protocol helps clarify its role in decentralized governance, enabling transparent decision-making.

Delegator rights refer to the privileges and responsibilities of individuals who delegate their staking tokens to validators in a blockchain network. When a user holds tokens that can be staked, they may choose not to stake them directly. Instead, they can delegate their tokens to a validator, who will stake them on their behalf.By doing this, delegators retain ownership of their tokens while allowing the validator to participate in network operations, such as validating transactions and securing the network. In return, delegators earn a portion of the rewards generated by the validator. This setup is common in proof-of-stake and delegated proof-of-stake systems.Delegators typically have the right to choose which validator to trust with their tokens based on various factors, including performance and reputation. They may also have the ability to withdraw or re-delegate their tokens at any time.However, delegators should be aware that by delegating, they are placing trust in the validator to act in their best interests, and poor performance by the validator may impact the rewards shared with the delegator.

Latest Resources and Blogs