Delegator
A delegator in the context of cryptocurrency refers to an individual who delegates their stake or voting power to another participant or entity on a blockchain network. This process typically occurs in proof-of-stake (PoS) or delegated proof-of-stake (DPoS) consensus mechanisms. Delegators often do this to contribute to network security, earn rewards, or participate in governance without actively running a node.
Examples and cases:
1. **Tezos (XTZ)**: In the Tezos blockchain, delegators can delegate their XTZ tokens to bakers (block validators) to participate in the consensus mechanism and earn rewards. Delegators retain ownership of their tokens while receiving a share of the rewards generated by the baker.
2. **Cardano (ADA)**: Cardano utilizes a PoS mechanism where users can delegate their ADA tokens to stake pools. Delegators choose stake pools based on factors such as performance, reliability, and fees. Delegating ADA allows users to participate in the network and earn rewards without running their own nodes.
3. **Cosmos (ATOM)**: In the Cosmos network, validators secure the network by proposing and validating blocks. Delegators can delegate their ATOM tokens to validators and receive a portion of the rewards generated by the validator. Delegating ATOM tokens helps to decentralize the network and secure its operation.
4. **EOS (EOS)**: EOS employs a DPoS consensus mechanism where token holders can vote for block producers. Delegators can vote directly or delegate their voting power to proxies who vote on their behalf. Delegating voting power allows token holders to participate in governance without actively monitoring the network.
In summary, delegators in cryptocurrency networks delegate their stake or voting power to other participants to contribute to network operations, earn rewards, and participate in governance processes.