What Is ‘Delegated Voting’ and How Does It Address Low Participation?
Delegated voting allows a token holder to assign their voting power to a trusted representative, or 'delegate,' who then votes on their behalf. This addresses low participation by enabling token holders who lack the time or expertise to still have their voices heard.
It creates a system of liquid democracy, concentrating expertise while maintaining decentralized ownership.
Glossar
Low Participation
Apathy ⎊ A sustained pattern of low participation in governance votes signals voter apathy, which critically weakens the protocol's ability to react to market microstructure changes.
Voting
Governance ⎊ Voting within cryptocurrency, options trading, and financial derivatives represents a mechanism for stakeholders to exert influence over protocol parameters, listing decisions, or the direction of decentralized autonomous organizations (DAOs).
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.
Delegated Voting
Delegation ⎊ This mechanism permits token holders to assign their voting weight to a chosen representative, effectively scaling participation without requiring every individual to monitor every proposal.
Voting Power
Measure ⎊ Voting Power is the quantifiable metric representing the degree of influence a specific participant holds over the outcome of a decentralized governance vote, usually derived from the quantity of staked or delegated tokens they control.