The DAO Delegation Handbook V1
  • Introduction
  • Part 1: Structuring and Growing DAO Delegates
    • Summary
    • Understanding Delegation
    • The Strategic Value of Professional Delegates
    • Case Studies & Industry Benchmarks
      • 1inch
      • Uniswap
      • Push DAO
      • Optimism
      • Sky
      • Lido DAO
      • Gnosis DAO
      • Arbitrum
      • Aave
      • Rari DAO
      • Paraswap DAO
      • Polygon
      • Key Takeaways from Delegate Programs
    • Reframing Compensation
    • Effective Delegate Program Design
      • Delegation Infrastructure
      • Community Engagement & Visibility
      • Accountability & Performance Standards
      • Transparency & Reporting
      • Diversity & Governance Balance
    • Sustaining & Evolving Delegate Programs
    • Ready, Set, Delegate!
    • Appendices
      • Legal Considerations
      • FAQs
      • Glossary
      • Resources
      • Templates
      • Tutorials
  • Part 2: The Delegate´s Roadmap
    • Summary
    • Becoming a DAO Delegate
    • Getting Started: Laying the Foundation
    • Establishing Your Delegate Profile
    • Core Responsibilities of a Delegate
    • Essential Tools for DAO Delegates
    • Exemplary Delegate Practices and Case Studies
    • Scaling Your Impact as a Delegate
    • The Future of DAO Delegation
    • Appendices
      • Legal Considerations
      • FAQs
      • Glossary
      • Resources
      • Templates
      • Tutorials
  • About StableLab
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  1. Part 1: Structuring and Growing DAO Delegates
  2. Effective Delegate Program Design

Delegation Infrastructure

A strong delegation infrastructure is the backbone of any successful delegate program.

Delegation Smart Contract

At the heart of any delegate program lies the smart contract that enables delegation. This contract is not just a technical necessity—it is the foundation upon which governance legitimacy and security rest. Poorly designed delegation contracts can lead to governance exploits, centralized control, or delegation inefficiencies.

For a delegation system to function effectively, the smart contract must be:

  • Secure: Built using best coding practices, reviewed through rigorous audits, and continuously updated to patch vulnerabilities. Exploitable delegation contracts can undermine an entire governance system.

  • Transparent: All delegation actions should be verifiable on-chain to ensure trust. DAOs must implement tools like governance dashboards (e.g., Tally, Agora, Boardroom) to enhance visibility into delegation trends.

  • Flexible: Capable of supporting delegation, revocation, and reassignment of voting power. Token holders should retain sovereignty over their governance power, with the ability to update their delegation preferences as needed.

Key Smart Contract Considerations:

  • ERC20Votes & ERC721 Delegation Standards: ERC20’s function is widely used for token-based delegation, while ERC721 delegation models are emerging in NFT-based DAOs.

  • Direct Vote Override: Allow token holders to temporarily override a delegate's vote in specific proposals, ensuring they retain a say on crucial matters.

  • Topical Delegation: Enable users to delegate their vote for specific governance areas or topics, improving specialization and efficiency. Example: A treasury-focused delegate vs. a protocol-upgrade-focused delegate.

  • Endorsements & Curation-Based Delegation: Models like EigenLayer allow token holders to endorse or curate delegates, adding a layer of social reputation to governance.

  • Delegate Term Limits: Some DAOs, such as MakerDAO, implement predefined delegation periods (e.g., one-year terms) to ensure rotation and prevent stagnation.

  • Integration of Cascading Voting Power: Inspired by liquid democracy models, this enables multi-level delegation, allowing voting power to flow through multiple levels of governance representation (e.g., Oxcart’s framework).

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Last updated 26 days ago