Delegation (Staking)
Delegation is assigning your tokens’ staking power to a validator so they can help secure a proof-of-stake network and share rewards with you.
Delegation in staking means letting a validator use the staking weight of your tokens to participate in a proof-of-stake blockchain. In most systems, you keep ownership of the tokens in your wallet or staking account, but you “delegate” their voting or validating power to a validator node. The validator helps produce blocks, confirm transactions, or vote in network consensus, and delegators usually receive a share of staking rewards after the validator’s commission is deducted.
Delegation matters because it lets people support network security and earn staking rewards without running their own validator hardware or staying online constantly. For example, instead of operating a server on a network like Cosmos or Solana, a token holder can choose a validator and delegate to it through a wallet interface. The trade-off is that validator choice matters: poor performance can reduce rewards, and some networks can penalize, or “slash,” delegated stake if a validator breaks rules. Delegated tokens may also be locked during an unbonding period before they can be moved.
Other terms in Staking & Yield
APR
APR is the simple annual rate of return or cost, shown before compounding, often used to compare staking, lending, and borrowing yields.
APY
APY is the annualized percentage rate showing how much a crypto yield position could earn in one year, including compounding.
Lockup APR
The annualized reward rate offered for staking, lending, or depositing crypto when funds must stay locked for a set period.
Slash Risk
The chance that staked crypto is penalized or partly confiscated because a validator breaks network rules or fails to perform correctly.