Definition ∞ A delegation mechanism allows participants in a decentralized network to assign their voting power or staking rights to another entity, often a validator or delegate, without transferring ownership of their underlying assets. This enables individuals who may lack the technical expertise or time to participate directly in governance or validation to still contribute to network security and decision-making. It facilitates broader participation and expertise aggregation within distributed systems. This process maintains asset security while distributing operational responsibilities.
Context ∞ Delegation mechanisms are fundamental to many proof-of-stake blockchains and decentralized autonomous organizations (DAOs), aiming to balance decentralization with operational efficiency. A significant discussion point involves the potential for centralization if too much power is delegated to a small number of entities, or if delegates act against the interests of their delegators. Continuous efforts focus on designing reputation systems and incentive structures to promote responsible and diverse delegation.
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