Home Regulation Contingent staking, why the Cardano community is pushing back

Contingent staking, why the Cardano community is pushing back

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The Cardano community is divided over accidental staking, with detractors calling it a compliance protocol to appease US lawmakers.

Input Output CEO Charles Hoskinson He said such criticism is puzzling and boils down to a misunderstanding of the idea.

“After reading some of the comments about contingent staking, I am still at a loss. is incredible.

What is contingent staking?

A recent SEC enforcement action against Kraken over its staking program put staking compliance in the spotlight.

recently live streamthe CEO of IO talked about conditional staking, which can be conceptualized as a protocol-level “right to refuse business.”

Stake pool operators (SPOs) are businesses, but in the existing Cardano staking model, SPOs cannot reject delegators (or customers) unlike real businesses, Hoskinson said. For example, a fried chicken restaurant owner can refuse to serve a rowdy or obnoxious customer, he said.

However, as it stands now, SPOs cannot reject delegated tokens.

He stressed that the SPO’s right to reject delegated tokens “is not inherently a compliance protocol.” IO CEOFurthermore, contingent staking is just a multisig setup, requiring that the delegated transaction proposed by the delegator is approved by the SPO.

“It’s not essentially a protocol about letting the U.S. government control things.

Using this multi-sig approach, Hoskinson said, “fire” bad customers, weed out those who don’t fit your values, and say, “Yes, we can use that pattern for KYC.”

Split of the Cardano community

comment Reddit post In addition, he highlighted the shifting narrative that decentralized blockchains have moved from balancing power to required changes for compliance. The poster asked what other changes were planned.

“The point is, if we change it in the base layer to please America now…what other changes we make later.”

Hoskinson It is viewed as such a criticism.”Informative, dramatic, routine reactionEspecially since conditional staking is just a concept for discussion.

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