In a groundbreaking announcement, Charles Hoskinson, the visionary founder of Cardano, has introduced a comprehensive framework for blockchain governance. This ambitious initiative, unveiled during a live broadcast from Colorado on October 13, 2024, lays the foundation for what Hoskinson calls a “Bill of Rights” for the Cardano ecosystem. It comprises 11 core blockchain tenants that aim to shape the future governance and development of Cardano, with potential implications for the broader blockchain landscape.
A Collaborative Effort in Blockchain Governance
Hoskinson emphasized the collective effort that has gone into shaping this initiative. Over 50 workshops have already been conducted, involving 1,400 participants and the election of 63 delegates, showcasing a truly collaborative approach. These efforts culminated in a blog post titled “The 11 Blockchain Tenants Towards a Blockchain Bill of Rights,” which outlines principles that extend beyond Cardano to serve as a universal framework applicable to diverse blockchain systems.
Exploring the 11 Core Blockchain Tenants
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At the heart of this initiative are the 11 tenants, each carefully crafted to ensure the robustness and fairness of the Cardano ecosystem. Hoskinson detailed their significance and practical application:
- Transaction Censorship Resistance: Transactions must not be hindered or censored, ensuring user autonomy. This principle likens to freedom of speech, emphasizing the right of users to engage with the system freely and efficiently.
- Predictable Transaction Costs: Transaction costs should be predictable and reasonable, enabling user planning and sustainable system operation. Solutions like tiered pricing are being explored to balance resource allocation with user demand.
- Fair Recognition And Compensation: Contributions from users are to be recognized and rewarded fairly, preventing incentive failures within the ecosystem. This tenant advocates for equitable compensation across various roles, from stakeholders to governance participants.
- Data And Value Portability: Users’ data and value contributions should not be processed without consent, reflecting GDPR principles and advocating for user control over personal assets and information.
- Resource Efficiency: Minimizing unnecessary resource use is crucial for long-term viability. Efficient protocol design prevents systemic bloat, ensuring Cardano’s sustainability.
- Safe Preservation Of Value And Information: Maintaining data integrity and value stability, even against threats like quantum attacks, is vital. Mechanisms such as stablecoins are integral to this tenant.
- Minimization Of Unnecessary Resource Expenditure: Efficient resource use is emphasized, as demonstrated in the transition from Plutus V1 to V2, which significantly reduced transaction sizes.
- Fair And Representative Governance: Inclusive governance ensures all stakeholders have a voice in the system’s evolution. This tenant is poised to be formalized at the upcoming Constitutional Convention in Buenos Aires.
- User Privacy Preservation: Protecting users’ privacy regarding their actions and data is paramount, reflecting GDPR standards. The balance between transparency and privacy is carefully maintained.
- Compliance with Local Laws and Regulations: Cardano’s global nature necessitates compliance with local laws, providing users with ways to engage without breaking regulations.
- Transparency, Predictability, and Verifiability: The system’s operations must be transparent and verifiable, ensuring trust and accountability through open-source protocols.
The Path Ahead for Cardano
Hoskinson detailed the ongoing efforts to formalize these tenants through decentralized governance. He highlighted the necessity of such governance, stating, “You have to have decentralized governance before you go down that road because only through decentralized governance can you make a decision for everyone everywhere.” The upcoming Constitutional Convention in Buenos Aires, Argentina, scheduled for December 2024, will bring together delegates from 50 countries to finalize and approve the constitutional text based on these tenants.
Implications Beyond Cardano
The significance of this initiative extends beyond Cardano, with the potential to inspire other blockchain communities to adopt similar frameworks. Hoskinson articulated, “These tenants are being actively debated by the Cardano community […] they will act as beacons in the far horizon that will pull Cardano and other blockchain communities to where they intend to travel to.” The emphasis on balancing technical innovation with ethical governance could set a precedent for the blockchain industry.
Preserving Integrity Over Short-Term Gains
As Hoskinson concluded his announcement, he underscored the importance of maintaining the system’s integrity over pursuing short-term gains. “We should never sacrifice the integrity of the system for the sake of short-term gain or short-term progress on some arbitrary metric like token price or adoption,” he asserted, highlighting the core values driving Cardano’s development.
At the time of this announcement, ADA, Cardano’s native token, was trading at $0.3536.
