✅ Master Delegation Systems

Understand delegation mechanics, strategies, and centralization risks

Delegate your voting power to trusted representatives

🎯 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.

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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)
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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
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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
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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

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Uniswap: Delegation at Scale

400M UNI delegated to ~12k addresses. Top delegate (GFX Labs) controls 14M UNI voting power. System works but creates influential elite.

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Compound: Professional Delegates

Gauntlet (risk analysis firm) has 920k COMP delegated. They vote on technical proposals using data models. Expertise delegation in action.

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ENS: Steward Program

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.