Cardano News: ADA Co-founder Backs Contingent Staking Amid Increasing FUD
Cardano News: Cardano Co-founder, Charles Hoskinson has expressed his disappointment with the stubborn take of people on staking and that they are misrepresenting contingent staking, which he announced last week for Cardano. He went on to clarify that a KYC regime is not implemented on Cardano through contingent staking and does not take the place of standard staking. Private pools are not eliminated by it. There would still be a market for SPOs that people may use to delegate according to their preferences, including common stake pools.
Hoskinson Takes On SPOs
He said the Staking Pool Offerings (SPOs) engage in rivalry and charge you for your delegation. They are a voluntary yet valuable service provider, similar to bitcoin mining pools. This helps to improve the network’s quality and reduce reward variance, added Hoskinson in the thread.
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Expressing frustration with opponents of CS he said they don’t seem to understand the potential dangers of another staking mechanism called “Initial Staking Pool Offering” (ISPO) without proper entry conditions and contracts before accepting customer funds.
Cardano Co-founder Announces Contingent Staking
Amid increased regulatory scrutiny around staking activities in the cryptocurrency space, Charles Hoskinson, the founder of Cardano (ADA), proposed a new model on 10 February, that would comply with legal requirements. Hoskinson suggested the “contingent staking” model, which would incorporate KYC practices.
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In this model, both the delegate and the staking pool operator would have to sign a two-sided transaction certificate before it is processed. This is different from the current staking model, where delegates simply send a transaction to the pool. With contingent staking, the transaction would be pending until both parties sign, giving pool operators the chance to consent to the delegation beforehand. Hoskinson stated that the Cardano community plans to create the necessary documents to introduce the concept, which would outline how contingent staking would work in practice.
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