In one of his most recent YouTube videos, Charles Hoskinson, the CEO of IOHK, talked about the long and deceitful road he and his team had to take in order to create a solid base for Cardano’s governance.
The two most important elements of a successful governance system, which are participation and knowledge, wouldn’t be possible without the Cardano community, the CEO stated, and that is why the company plans to leave users with a self-sustaining and decentralized platform they will account for.
Conversations About Governance Led to Cardano’s Major Development
With the Shelley mainnet now out for almost three full months, most of the conversations related to Cardano appears to have shifted to Voltaire. The ambitious blockchain’s governance stage is set to offer the last few pieces needed to make Cardano a fully dynamic and decentralized system where the company that created it won’t be able to control it.
While Voltaire is still under works, it is often discussed in the present tense instead of the future one, which is evidence of the amount of research and preparation that went into it. The process of switching Cardano from a static and federated system to a dynamic and federated one has been ongoing for over five years; however, it was only after Shelley rolled out that its development got supercharged.
The Issues of Governance Begin with Definitions
Unlike some of the basic factors of staking, the significant defining aspects of governance – participation and knowledge – are very much theoretical. This means that the first issues IOHK encountered when developing Voltaire were not abstract, but semantical – namely, introducing governance to a system requires coming up with very stiff definitions.
“The governance component is the single hardest component of all cryptocurrencies,” Hoskinson said in his video.
Developing a system with high participation where the community’s knowledge regarding the protocol enhances with time is difficult, so, rather than inviting the community onboard Voltaire once it’s ready to launch, IOHK decided to include the community in the process.
As per Hoskinson, this was the reason behind the decision of the company to create the DC Fund. The main theory supporting this was that if the company created a little money pot, people would also want to participate in the process.
How the Ballot Process Functions
Although very ambitious, the DC fund is currently only starting. The so-called ‘Fund 1’ is currently under development, with the main aim of the fund being focus grouping and creating interfaces that would support a future voting system.
Once done, it will be immediately followed by Fund 2, which will enable users to vote on the allocation of $250,000 worth of ADA that’s currently held in Cardano’s treasury system. Voting, as the CEO explained, will be possible via a ballot system – and this is where things become interesting.
IOHK has already signed a collaboration deal with Idealscale, a company that works in the innovation management sector. The partnership basically enables Idealscale to take the community’s suggestions on governance and develop them to create a single ballot that would contain the best propositions.
Such ballots, thoroughly studied and designed, will have a much stronger possibility of getting approved that a series of disconnected community suggestions. With new funds rolled out every six to eight weeks, the community can be guaranteed that their proposals will be consistently considered.
The Voting System and Future of Cardano
As per the current plan, the first vote could be rolled as early as October, as Hoskinson said that voter registration should begin at the end of this month. Currently, the company will be concentrating on enhancing the quality of the ballots, but Hoskinson noted that the user experience is probably set to disappoint.
Still, with a lot of work, the ballot system will arrive at a stance where it won’t be only about funding. The community will be allowed to use the system to vote on Cardano Improvement Proposals (CIPs) and suggest the platform’s design.
According to the CEO, there’s a particular point in time when we will know when the voting system has gotten to its peak stability, and that is when it manages to report with ease to decisions, and the community accepts them without trying to fork the project.
“If this can be accomplished, Cardano will be the most valuable cryptocurrency in the world,” he said.
The process, though, might take longer than the crypto sector is used to; Hoskinson said that it might take around five and 30 years before this happens, but mentioned that the exponential growth in the industry’s development might accelerate the process greatly.
Once full decentralization is here, IOHK will become one of the players in Cardano’s community.
Fund 3 is set to launch either in November or December and will probably be used to test out the voting system on CIPs. In three to six months, Shelley is also expected to get to an ‘equilibrium’ that will enable users to delegate their ADA to a series of pools.