Cardano Founder Charles Hoskinson Sounds Alarm Over Future of the Network
Cardano Founder, Charles Hoskinson, Urges for a Structured and Fact-based Process for Decision Making
In a series of tweets, Charles Hoskinson, the founder of Cardano, expressed his frustration with the controversy surrounding Contingent Staking (CS) and called for a more informed and rational discussion on the matter.
Opponents of this concept offer no solution for how actors like governments, universities, regulated entities, not for profits, and others who could and sometimes actually do run stakepools can do so and stay in compliance with local regulations. I guess they don't matter? (3/10)— Charles Hoskinson (@IOHK_Charles) February 16, 2023
Hoskinson criticized the polarization of opinions and misrepresentations of the basic concept of CS. He clarified that CS does not implement a KYC regime on Cardano, nor does it replace normal staking or remove private pools. He emphasized that a marketplace of stake pool operators (SPOs) would still exist, allowing people to delegate to their preferences, including normal stake pools.
Hoskinson also pointed out that opponents of CS have not provided a solution for how actors such as governments, universities, regulated entities, not-for-profits, and others could run stake pools and stay in compliance with local regulations. He suggested that the opponents do not seem to understand the danger of an ISPO without entry conditions and contracts prior to getting customer funds. Additionally, he stated that opponents of CS want to remove all agencies of SPOs, claiming they are a public good.
Hoskinson argued that SPOs compete against each other and charge fees for delegation and that they are an optional but valuable service provider, like mining pools in Bitcoin, to enhance the quality of the network and reduce reward variance. He questioned why discourse broke down like this with CS and emphasized that it's a moment that everyone should reflect upon.
Hoskinson urged for a structured, transparent, and fact-based process to debate and converge to decisions if CIP 1694 passes and the MBO is a success. He warned that Cardano must not become a reflection of the greater divisions most western democracies are currently facing. Hoskinson believes that Cardano needs to be better for the sake of the seven years of hard work committed to these protocols and the millions of users who rely upon them
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