Charles Hoskinson: Cardano’s New Voting System Will Make ADA the Most Valuable Cryptocurrency
Sarah Tran Sep 17, 2020 03:48
IOHK, the blockchain engineering company behind the Cardano blockchain, will develop a voting system that will make its ecosystem hard fork resistant.
IOHK, the blockchain engineering company behind the Cardano blockchain, will develop a voting system that will make its ecosystem hard fork resistant. This voting system would make Cardano’s native cryptocurrency ADA the most valuable cryptocurrency, according to IOHK CEO Charles Hoskinson.
In one of Hoskinson’s latest video updates, the IOHK CEO discussed Cardano’s governance model and revealed the future plans for Cardano. Cardano’s future roadmap would take the blockchain to another level of decentralization, as more blocks will be created by the community’s stake pools. Hoskison revealed that 30 percent of all blocks are now produced by the community, and 50 percent is expected by early November. When Cardano reaches its last phase, Voltaire, Cardano would become a self-sustaining ecosystem.
Cardano will introduce a new voting and treasury system which allows the network participants to decide on the future development of the Cardano network, with their voting rights. Hoskinson previously introduced the DC Fund and Project Catalyst, which are backbones for the voting and treasury system.
The first vote will be in October, where ADA holders will be able to decide on a small treasury fund of $250,000. IOHK will also use an innovation management partner, called Idenscale, and the funds will continue to rise in the future. Idenscale will take what the community proposes, and work with the community.
There will be votes on the Cardano blockchain every six to eight weeks, where the ADA community can vote whether or not to support a proposal. The Cardano community can return the funds to the treasury, or they can decide to distribute it to ballot proposals.
As part of Cardano’s goal to become increasingly decentralized, this voting system would promote participation in the ecosystem, which could improve and further decentralize the system. Cardano will also create a feedback loop that would improve the voting system. Hoskinson added:
“The community will be in total control of the parameters and the design of the system […] The beautiful thing is that we will have an enormous amount of evidence in data about whether the system is stable or not and by definition of stable, the system can converge reliably to decisions and the community accepts those decisions, meaning that we don’t have a Cardano Classic or a Cardano Cash.”
Hoskinson concluded that this system will allow Cardano to become the most valuable cryptocurrency. He also said that the release of Goguen, Cardano’s next phase would make Cardano “extremely competitive” in the DeFi space.
Image source: Shutterstock
