Active Vs Passive Delegation

Active vs passive delegation refers to the different levels of engagement required by token holders when assigning their voting rights. Active delegation involves the holder regularly interacting with the delegate, providing feedback, and potentially shifting their support between different representatives based on performance.

Passive delegation, by contrast, is a set-and-forget approach where the holder selects a delegate and rarely intervenes, trusting the representative to act independently. While passive delegation is easier for the user, it can lead to a lack of oversight and increased risk of delegate complacency.

Active delegation fosters a more engaged and informed community, which is generally better for the long-term health of a protocol, but it demands more time and effort from the participants.

Daily Active Users to Token Holders Ratio
Active Management Risk
Active Share Calculation
Hedge Ratio Management
Delegation Revocation Protocols
Jailing Mechanisms
Vote Delegation Risks
General Partnership Classification