Delegation

Delegation is the process by which token holders assign their stake to a validator without giving up ownership of their assets. This allows smaller holders to participate in the staking economy and earn rewards even if they do not have the resources or technical skill to run their own validator node.

The delegator earns a share of the rewards generated by the validator, typically minus a commission fee paid to the validator for their services. This structure promotes decentralization by allowing more users to contribute to network security.

However, delegators must carefully choose their validators based on performance, commission rates, and the risk of slashing. It is a fundamental way to earn yield in many modern blockchain ecosystems.