Cardano is set for a major governance overhaul. The change comes with the upcoming Chang hard fork. It's got ADA holders on edge.
Charles Hoskinson, Cardano's founder, has stepped in to clear the air. He's laid out the options for withdrawing staking rewards post-fork. The clarification follows growing unease among ADA holders.
Concerns first surfaced when Linda, a Stake Pool Operator, sounded the alarm. She warned that users might need to delegate to a DRep to access rewards. Hoskinson was quick to respond.
"Users have three choices," he stated. They can vote no confidence, abstain, or delegate to a DRep. Lace, a wallet, will default to abstain if users only select delegation. It's meant to simplify things.
But there's a catch. Abstaining isn't passive. It requires action. Hoskinson confirmed this in a follow-up tweet. ADA holders must make active decisions in the new system.
Some users aren't thrilled. Jacob, posting on X, expressed distrust in the new DRep roles. He fears "influencer DReps" might drain the treasury.
Hoskinson reassured skeptics. "That's why that option is there," he said. Users can even vote no confidence in the entire system. It's a built-in safeguard.
The Chang hard fork introduces significant changes. These are outlined in Cardano Improvement Proposal (CIP-1694). It details four governance roles: General ADA holders, Delegated Representatives (DReps), Stake Pool Operators (SPOs), and the Constitutional Committee.
General ADA holders form the network's backbone. They can engage directly or delegate to DReps. DReps vote on behalf of others. They're expected to understand proposals deeply.
SPOs maintain the blockchain's infrastructure. Under the new model, they can submit proposals and vote on actions. The Constitutional Committee ensures governance aligns with network principles.
It's a lot to take in. But for ADA holders, understanding these changes is crucial. The new system aims for more democratic governance. Whether it delivers remains to be seen.