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.
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 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.
