How Does ‘Vote Delegation’ Work in a DAO Governance System?
Vote delegation allows a token holder to assign their voting power to another address, known as a 'delegate,' without transferring ownership of their tokens. This is crucial for participation, as it allows less-engaged members to still have their tokens represented by a knowledgeable delegate.
The delegate then votes on their behalf, increasing the total voter turnout and expertise in treasury decisions.
Glossar
Delegation
Principle ⎊ Delegation, within the context of decentralized finance governance, operates on the core principle of non-custodial transfer of decision-making authority, allowing token holders to assign their voting rights without relinquishing asset control.
Voting Power
Governance ⎊ Voting power in the context of cryptocurrency refers to the ability of token holders to participate in the decision-making process of a decentralized autonomous organization (DAO) or protocol.
DAO Governance
Decentralization ⎊ DAO Governance, within cryptocurrency, options trading, and financial derivatives, represents a shift from centralized control to distributed consensus mechanisms for protocol management.