Can a Validator’s Stake Be Delegated by Other Token Holders?
Yes, in many Proof-of-Stake (PoS) systems, token holders can delegate their stake to a validator. This model, often called Delegated Proof-of-Stake (DPoS), allows users who don't have enough funds or technical knowledge to run their own validator node to still participate in securing the network and earning rewards.
They entrust their tokens to a validator, who then stakes on their behalf and shares a portion of the earned rewards. This increases decentralization by allowing more people to participate in the consensus process.
Glossar
Validator
Role ⎊ A validator is a critical network participant in a Proof-of-Stake blockchain responsible for proposing, verifying, and attesting to new blocks of transactions to maintain consensus and secure the distributed ledger.
Token Holders
Custody ⎊ Token holders, within cryptocurrency and derivative markets, represent the legal and economic owners of digital assets, influencing governance protocols and market dynamics.
Validator Node
Role ⎊ A Validator Node is a network participant in a Proof-of-Stake or similar consensus system responsible for proposing, verifying, and attesting to the validity of new blocks of transactions.