Preamble

The Cardano Blockchain gives everyone access to a decentralized consensus mechanism where they can participate in a trustless, transparent, and immutable environment if they so choose. Anyone can participate. Anyone can be a Stake Pool Operator.

Section 1: General Rules

There will be no unenforceable rules in the Constitution. If something cannot be controlled and settled by a smart contract in a trustless manner, it must be handled by a Members Based Organization (MBO). This Constitution governs a Blockchain. If you want a rule, make a CIP.

Process for making a CIP

Section 2: Budget

The total Cardano Budget shall be determined algorithmically. (I put a framework for this in ICC civics)

  • Algorithm for determining total budget here
  • Mechanic for splitting budget distributions to MBOs here

Distributions from the treasury require on-chain voting by Delegated Representatives (DReps) with voting power determined by delegated stake. Different actions can have different voting rules and stake calculations if defined by a CIP.

  • Algorithms that change voting power/weight go here

Cardano Treasury Distributions must be routed through and governed by a Members Based Organization that meets the following requirements:

  • Requirements

Cardano Treasury actions and distributions are meant to become more decentralized over time. When a region/group meets these requirements, it can choose to become its own MBO and will be algorithmically appropriated a portion of the treasury:

  • A specified percentage of transaction volume
  • A set level of SPO delegation to associated Stake Pools
  • An MBO meeting the requirements delineated in Section 2
  • Other requirements

Stake Pool Operators

Anyone can be an SPO as long as they perform to standards. Stake Pool Operators can have their keys removed and be removed by a vote of 51% of SPOs if:

  • They fail to produce 2 or more blocks in a timely and effective manner as defined by:
    • Definitions here
  • They participate in a scheme that allows third-party software to scan the mempool and build blocks with reordered transactions.
  • Other reasons that can be added

Delegated Representatives

Delegated Representatives are governed by these rules:

  • Process to become a DRep:

DReps shall be able to vote in only one region/group as defined by Section 2 Part 4 for treasury disbursements.

  • Expanded listā€¦