Cardano: Hoskinson proposes staking guilds, DAOs and portfolios

  • According to Charles Hoskinson, Cardano could very soon receive staking guilds and staking portfolios in order to decentralize the network even more.
  • The guilds are to be organized through a DAO, and with the start of the dcFund there could be a vote on the integration of the idea.

Cardano inventor Charles Hoskinson informed about new ideas and developments in the field of staking in one of his popular whiteboard videos. As the CEO of Input Output Hong Kong (IOHK) explained, standards are of great importance in the further development of Cardano. This also applies to the area of stake pools, where he considers it as desirable that these form “staking guilds”.

As Hoskinson explained, stake pools could agree on common standards and negotiate other things by forming guilds. With the launch of dcFund, there could be a vote to decide whether to form stake pool guilds. To counteract the concerns of decentralization, the guilds should be organized as a DAO (decentralized autonomous organization). IOHK would be responsible for development.

Another topic Hoskinson discussed was delegation in the “one to many” relationship. This means that with a single wallet, ADA owners could be enabled to delegate ADA to multiple stake pools representing different ideas and initiatives:

This opens up the idea of almost like playlists for SPOs. You know how people share music with you, here’s my favourite playlist […] well similarly you can have portfolios based upon things you are interested in. And they have different allocations in terms of percentages.

People can share them and curate them. So you can say. ‘I am really interested in water projects in Africa. These 5 stake pool operators doing these things. I am really interested in people subsidising the client development […] or I just want to maximize profits.

Instead of the current delegation center within the Daedalus wallet there could be a “portfolio center”. According to Hoskinson an implementation would be very easy once the “one to many” relationship is implemented. IOHK is currently in talks with the two leading hardware wallet manufacturers Ledger and Trezor to allow the technical implementation of staking mechanisms such as pledging, KES. In combination with Multi-Sig, very small Stake Pools could thus cooperate and form guilds.

According to Hoskinson, a very soon implementation of both ideas, staking guilds and portfolios, is very likely:

I believe very firmly that these staking guilds are coming and I believe very firmly that we gonna get curated portfolios of staking at some point very soon. We gonna do our part make the software better, add more features and functions.

Finally, Hoskinson also emphasized the importance of the community and its suggestions for improvements, which are ultimately an important part of a feedback loop:

So the more problems we find that circle continues. And that is ultimately why Cardano is going to be number one. It’s not about where we are at today, it’s about recognizing that we are off the spiral. […] Our competitors are closed systems in that respect. It might be very large and big like Bitcoin, but eventually the spiral gets larger.

Below you can find the whiteboard video by Charles Hoskinson.

About Author

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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