How does it work?

Delegation is a process that facilitates efficient governance, consensus and operational management in a blockchain.

A participant in the network - a delegator - assigns their voting rights, governance power, and/or staking responsibilities to another participant, referred to as the delegate. This is often a validator of the network.

Why choose to delegate?

This process allows every token holder to participate in the staking process without running their own validator. The validator receives yields from the staking process for validating transactions directly. Then the validator shares a portion of the corresponding rewards with each delegator while taking a percentage of the rewards for being the delegate. Each validator can adjust the commission percentage to incentivize more participants to become delegators.

In Kima, delegation locks the tokens for a period of time. This prevents misuse of the delegation and instant withdrawals after receiving rewards or participating in network decisions.