Bitrabo Editorial
Charles Hoskinson, the creator of Cardano, has offered essential explanations about the choices ADA holders will have when claiming staking rewards post the Chang hard fork. This information is crucial amid concerns among ADA holders regarding changes in governance and reward systems.
Key Information for Cardano Holders
Linda, an operator at MALU Pool, raised an initial concern, highlighting the potential requirement for ADA holders to delegate to a Delegated Representative (DRep) to continue withdrawing staking rewards after the upcoming hard fork.
Addressing the issue, Hoskinson clarified the process, indicating that users must select one of three choices to withdraw staking rewards: vote of no confidence, abstain, or delegate to a DRep. He explained that wallets like lace will automatically choose to abstain if delegation is selected, simplifying the process.
Following community queries, it was clarified that abstaining requires an active decision rather than passive inaction. Hoskinson emphasized that ADA holders need to make intentional choices within the new governance framework to impact their staking rewards.
Concerns were also raised about potential mismanagement of the governance system. In response, Hoskinson highlighted the system’s flexibility, allowing holders to express dissent or opt-out if they have concerns.
The Chang hard fork brings significant changes, including the introduction of various governance roles outlined in Cardano Improvement Proposal (CIP-1694), such as General ADA holders, Delegated Representatives (DReps), Stake Pool Operators (SPOs), and the Constitutional Committee.
The 4 Governance Roles
General ADA holders are integral to the network and can engage directly in governance or delegate their voting power to DReps. DReps, introduced in the Age of Voltaire phase, represent other ADA holders in governance decisions and are expected to act in their best interests.
Stake Pool Operators, like Linda, are crucial in running nodes and maintaining the blockchain infrastructure. Under the new governance model, SPOs can submit proposals, engage in discussions, and vote on governance matters.
The Constitutional Committee ensures governance actions align with the network’s constitutional principles, reviewing proposals to uphold constitutional norms and the network’s long-term viability.
ADA was trading at $0.3297 at the time of publication.