Definition
Delegation is the assignment of a specific authority to another participant without necessarily transferring ownership of the underlying assets. In proof-of-stake systems, it commonly means assigning stake weight to a validator that performs consensus duties.
How It Works
The delegator selects a validator and follows the network’s delegation process. The validator may share rewards after deducting commission. In some networks, tokens remain associated with the delegator’s account; other arrangements use contracts or custodians. Governance delegation instead assigns voting power and does not automatically create staking rewards.
Key Considerations
Delegating is not permission to assume every service is noncustodial. Withdrawal rights, lockup periods and exposure to a validator’s penalties differ. A commission change or poor performance can reduce earnings. The scope of the authority matters: delegating votes, assigning stake and entrusting private keys are different actions with different consequences.