Definition ∞ Retail delegators are individual cryptocurrency holders who assign their staking rights to a third-party validator. In proof-of-stake networks, these smaller investors choose to delegate their tokens to a professional validator, allowing the validator to participate in the consensus process on their behalf. This enables retail participants to earn staking rewards without needing to run their own node or possess extensive technical knowledge. They retain ownership of their underlying assets while contributing to network security.
Context ∞ The role of retail delegators is crucial for the decentralization and security of many proof-of-stake blockchains, with news often discussing the platforms and services that facilitate this participation. Regulatory scrutiny is increasing around staking-as-a-service providers, particularly concerning investor protection and the potential for these services to be classified as securities offerings.
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