Delegation

Assigning your token-voting rights to another address that votes on your behalf.

Delegation lets token holders assign their voting power to a delegate — another wallet that votes on their behalf. Delegation solves voter apathy: rather than every holder researching every proposal, most delegate to active participants. Active delegates typically include investment firms, university blockchain clubs, and individual community contributors.

Delegation also concentrates governance power. In most DAOs, the top 10 delegates hold a majority of active voting power, even though they hold a small fraction of token supply. This isn't necessarily bad — informed voters are better than uninformed ones — but it does mean DAO governance often resembles a delegate council more than direct democracy.