✅ Master Delegation Systems
Understand delegation mechanics, strategies, and centralization risks
Delegate your voting power to trusted representatives
Your Progress
0 / 5 completed🎯 Key Takeaways: Vote Delegation
You've learned how delegation transforms passive token holders into active governance participants—and how it creates new power dynamics. From mechanics (on-chain smart contract calls) to concentration (oligarchy of delegates) to strategy (choosing aligned representatives), here are the critical lessons.
Delegation Basics
- •Transfer voting power (not tokens) to another address via smart contract
- •Gas cost: $5-$50. Instant effect for future proposals only (snapshot-based)
- •No token lock—stay liquid while participating in governance
- •Self-delegation required to vote directly in most DAOs (technical checkpoint)
Power Concentration
- •Top 10-20 delegates typically control 25-40% of voting power across major DAOs
- •Creates oligarchy: efficient coordination but centralization risk
- •Collusion risk: small group can coordinate to pass self-serving proposals
- •Better than apathy, but far from egalitarian democracy
Choosing Delegates
- •Participation rate: 90%+ is excellent, below 80% is concerning
- •Value alignment: do their votes match YOUR priorities? (most important)
- •Transparency: public vote explanations, active in forums/Discord
- •Check conflicts of interest: service providers, competing projects
Active Management
- •Review delegate performance every 3-6 months (voting record, alignment)
- •Re-delegate freely if misaligned or inactive (no cooldown, $5-$50 gas)
- •Engage with delegates: comment on proposals, provide feedback
- •Consider split delegation or self-delegate + selective voting
🌍 Real-World Examples
400M UNI delegated to ~12k addresses. Top delegate (GFX Labs) controls 14M UNI voting power. System works but creates influential elite.
Gauntlet (risk analysis firm) has 920k COMP delegated. They vote on technical proposals using data models. Expertise delegation in action.
Formalized delegate system with elected stewards. Top 3 control 20%+. Structured but concentrated—trade-off accepted for operational efficiency.
🎓 Master Insight
Delegation is pragmatic representative democracy—not the idealized "every voice equal" vision, but better than plutocracy or apathy. It acknowledges reality: most people won't read 50-page proposals or vote on protocol parameters. Delegation lets informed, active participants govern while giving passive holders a voice through their choice of representative. The system's legitimacy depends on delegator vigilance: if you delegate and never review, you've outsourced governance completely. If you check quarterly, re-delegate when misaligned, and occasionally weigh in on critical votes—you've found the balance. Delegation isn't passive. It's choosing WHO acts for you.