Governance & DAOs

Delegation

Vote Delegation

Assigning voting power to another party to vote on your behalf

Definition

Delegation allows token holders to assign their voting power to another party (delegate) who votes on their behalf, enabling more informed participation in governance.

Delegation (Vote Delegation) is a governance term used to understand Assigning voting power to another party to vote on your behalf. In practice, it matters because it affects how users evaluate protocols, compare opportunities, and avoid hidden assumptions.

Example

If you hold UNI tokens but don't have time to research every proposal, you can delegate your voting power to a trusted community member or organization.

How it works

In practice, the concept shows up like this: If you hold UNI tokens but don't have time to research every proposal, you can delegate your voting power to a trusted community member or organization.

Why it matters

Delegation matters because small misunderstandings in DeFi can turn into bad pricing, liquidation, governance, custody, or smart-contract risk. A good mental model helps you compare protocols without relying on marketing language.

What to check

Treat it as a governance concept: check who has voting power, what can be changed, and whether minority users can exit. The main checks are: Delegate misalignment; Centralization of power; Reduced direct participation.

Risks to Consider

Delegate misalignment
Centralization of power
Reduced direct participation

Common Questions

What does Delegation mean in DeFi?

Delegation means Assigning voting power to another party to vote on your behalf. The useful question is not only the definition, but how the mechanism changes risk, return, liquidity, or governance for the user.

How is Delegation used in practice?

A practical example: If you hold UNI tokens but don't have time to research every proposal, you can delegate your voting power to a trusted community member or organization.

What should I check before relying on Delegation?

Check delegate misalignment, centralization of power, reduced direct participation. Also verify liquidity, oracle assumptions, admin controls, and whether the protocol has been tested during stressed markets.