Delegation in AWE Governance

An Introduction to Delegation

Delegation is required for AWE tokens to be utilized in governance proposals and voting. It allows an AWE token holder to authorize another address (i.e., a delegate) to vote on their behalf by granting that address their voting power.

There are two types of delegation, both requiring the same process:

1. Self-delegation – An AWE token holder delegates to their own address to enable personal voting power.

2. Delegation to another address – An AWE token holder delegates to a different address, such as an active community participant or governance representative.

Once AWE tokens are delegated, the voting power of all AWE tokens in the delegating wallet is transferred to the recipient wallet. If the token balance changes in the original wallet, the delegated voting power adjusts automatically.

Delegates can participate in AWE governance, including creating proposals and voting on behalf of token holders.

This delegation model follows the structure seen in major governance frameworks, such as Compound and Uniswap.

Join and Delegate your AWE tokens on Tally.

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Key Considerations for Delegation

• Delegation does not transfer ownership of AWE tokens, it only grants “Voting Power” to the delegated address.

• AWE tokens that are not delegated do not count toward governance participation, meaning holders must delegate to themselves or another address to vote.

• Delegation is beneficial for users who want to influence governance but may not be able to actively monitor and vote on every proposal. This works similarly to electing a representative in traditional governance systems.