Cardano’s First On-Chain Governance Pool
Cardano has taken a significant step towards achieving its vision of complete decentralization with the introduction of its first on-chain governance pool. As part of a test, the Proof-of-Stake (POS) network proposed changing two crucial parameters within the ecosystem. The response from the community was overwhelming, prompting Cardano to prioritize user-driven governance and listen to its users. This move marks the beginning of an era where the network’s direction is shaped by the voice of the community.
Proposed Parameter Changes
In May 2023, Cardano put forth proposals to modify two critical parameters on the network: the k parameter, which determines the optimal number of stake pools, and the minPool cost, which sets the minimum fee a pool can charge per Epoch in ADA. These parameters play a pivotal role in the network’s operations.
Strong Community Participation
The voting results demonstrated strong community participation, with 50% of Cardano’s users taking part in the vote. A total of over 10.85 billion ADA, equivalent to approximately $4.1 billion, were staked in support of various proposal actions.
Voting Results
The voting results revealed that 27% of participants favored increasing the stake pool limit to 1,000 and reducing the minimum ADA requirements for pool entry by half to 170 ADA.
Commitment to Decentralization
Cardano’s decision to reduce the minimum pool costs highlights its dedication to decentralization, community engagement, and user-driven governance. By giving the community a voice in shaping the network’s direction, Cardano aims to surpass other cryptocurrencies in terms of decentralization.
Hot Take: Cardano Empowers Its Community to Drive Decentralization
Cardano’s introduction of its first on-chain governance pool and its commitment to listening to the community’s voice marks a transformative moment for the network. By allowing users to participate in voting and proposing changes to critical parameters, Cardano demonstrates its dedication to decentralization, community engagement, and user-driven governance. This move sets Cardano apart from other cryptocurrencies and positions it as a leader in the pursuit of complete decentralization.
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