For this, we need delegation lockup periods, so both parties are protected. If we want to delegate to a project for one year in return for tokens/fiat, we need a way that no one can break that year contract; this will make delegations much more attractive to both parties involved.

Very true. Being sure of your security will encourage investors to invest more. There is a high need for the delegation lockup period such that they delegator cannot breach the contract when not due.