Fundamentals of Cardano Governance Webinar

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Original Content URL

https://www.youtube.com/watch?v=y2kTmw6rdTw

Summary

This 54-minute YouTube webinar, presented by Nicolas Cerny, the governance lead at the Cardano Foundation, provides a comprehensive overview of Cardano’s new governance model. The presentation covers key roles (including ADA holders, delegated representatives, the constitutional committee, and stake pool operators), various governance action types, and decision-making processes. Cerny emphasizes the transition to decentralized governance and the crucial role of community involvement in shaping Cardano’s future. The webinar includes a Q&A session at the end, addressing audience queries about participation, potential challenges, and the governance of Cardano’s test networks.

Main Topics Discussed

1. [00:43] Introduction to Cardano Governance Nicolas Cerny introduces the Cardano Governance Basics, outlining the topics: governance roles, action types, and decision-making processes. He emphasizes Cardano’s move towards full decentralization through on-chain governance transformation, with the community at the center of the model.

2. [02:15] Governance Roles The presentation details four key governance roles: ADA holders, Delegated Representatives (DReps), Constitutional Committee, and Stake Pool Operators (SPOs). Each role has specific responsibilities and voting powers within the governance model, ensuring a balanced and decentralized decision-making process.

3. [11:44] Governance Action Types Seven types of governance actions are explained: motion of no confidence, committee updates, constitutional changes, hard fork initiation, protocol parameter changes, treasury withdrawals, and info actions. Each type serves a specific purpose in the governance process, allowing for various changes and decisions to be made within the Cardano ecosystem.

4. [25:51] Decision Making Process The lifecycle of governance actions is described, including off-chain discussion, submission, voting, and enactment. This process ensures community involvement and transparent decision-making, with specific timelines and requirements for each stage of a governance action.

5. [33:41] Current State and Future of Cardano Governance The presentation covers the timeline of Cardano’s governance implementation, from the release of CIP 1694 to the upcoming Chang Hard Fork and beyond. It highlights the transition from genesis keys to community-driven governance and outlines future milestones, including the constitutional convention in Buenos Aires.

6. [38:18] Cardano Constitution The importance of the Cardano constitution is discussed, explaining its role in guiding governance decisions and ensuring adherence to community-defined principles. The constitutional committee’s role in enforcing the constitution is emphasized, along with the process for amending the constitution.

7. [40:09] Ways to Participate in Governance Five ways for individuals to participate in Cardano governance are outlined: delegating voting power, registering as a DRep, running a stake pool, submitting governance actions, and participating in discussions. The importance of community engagement is stressed, emphasizing that participation is possible even without holding ADA.

8. [43:31] Conclusion and Future Outlook The presentation concludes by emphasizing the potential for Cardano’s governance model to evolve and adapt to future challenges. It encourages community involvement to build a blockchain governed by and for its users, highlighting the ongoing nature of governance development.

Insights and Notable Data/Statistics

1. [01:48] Cardano’s governance model is defined in CIP 1694, named after Voltaire’s birth year (1694), symbolizing the era of decentralized governance for the blockchain.

2. [05:08] To register as a Delegated Representative (DRep), a deposit of 500 ADA is required, similar to the stake pool operator registration process.

3. [09:13] The Constitutional Committee currently consists of seven members, each with one vote, and the majority required for decisions is specified as a parameter.

4. [10:24] Stake pool voting power is proportional to the ADA delegated to the pool. For example, a pool with 50 million ADA delegated has 50 million votes.

5. [12:23] As of September 30, 2024, Cardano is in the bootstrapping phase between Chang 1 and Chang+1 hard forks, with three governance action types currently available.

6. [17:30] The “guardrail script” is an on-chain Plutus script that ensures protocol parameters cannot be changed beyond specified boundaries, protecting the network’s stability.

7. [28:56] The current deposit amount required to submit a governance action on Cardano is 100,000 ADA, which is returned if the proposal expires or is enacted.

8. [29:50] Governance actions have a voting window of six epochs, during which they must collect the necessary votes from different roles to be ratified.

9. [32:33] Governance actions are prioritized for enactment in a specific order: motion of no confidence, committee updates, constitutional changes, hard fork initiation, protocol parameter changes, and treasury withdrawals.

10. [34:18] CIP 1694, which defines Cardano’s governance model, was extensively discussed with over 500 comments on its GitHub pull request and numerous global workshops to gather community input.

11. [36:38] A constitutional convention is planned for December in Buenos Aires, where community representatives will draft the Cardano constitution, which will then need to be approved through the governance process.

12. [42:16] Active participation in governance discussions is highlighted as one of the most important ways to get involved, even for those without ADA holdings, emphasizing the need for an educated and informed community.