What is a delegator?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 4 min
In short
A delegator stakes without running a node, assigning the voting weight of their holdings to a validator instead. It lowers the entry bar and pays a share of the rewards, but a validator that misbehaves or goes offline costs the delegator too. Delegation is not a deposit — ownership stays with you.
Key points
- Stakes with a validator instead of running a node
- Can participate with small amounts and shares in rewards
- Penalties against the validator hit the delegator's stake too
- Ownership of the coins does not transfer
Definition
A participant in a proof-of-stake network who assigns the staking weight of their holdings to a validator rather than operating a node, and receives a share of the rewards.
Running your own validator means meeting a minimum deposit and keeping infrastructure online. On chains with delegation, a holder simply picks a validator from their wallet, and that validator's voting weight includes the delegated stake. Cardano, Solana and Cosmos-based chains all work this way.
Rewards arrive at the validator, which keeps a commission and passes on the rest. Commission rates vary, and alongside uptime and penalty history they are the main things to compare. You can usually redelegate at will, though some chains impose a waiting period when you move.
The important caveat is that delegating does not move the risk. If your validator is penalised for double signing, your delegated stake is cut in the same proportion. The coins themselves stay at your address, however, and the validator cannot spend them. Ethereum has no native delegation of this kind; custodial and liquid staking services fill the gap.
Watch out for
- · A penalty against your validator reduces your stake even though you did nothing wrong
- · Undelegating usually involves an unbonding period during which you cannot sell or move the funds
- · Choosing purely on the lowest commission can land you with an operator whose downtime eats the difference