Critical Cardano (ADA) Clarification from Charles Hoskinson on Governance

Cardano recently underwent an important update called the Chang hard fork. This move, among other things, introduced new on-chain governance mechanisms that allow users to make decisions about the network’s governance through delegated representatives, also commonly referred to as DReps.

This has raised some questions, and Charles Hoskinson, the project’s founder, has just shed some clarity on pressing matters.

Cardano Governance Following Chang Hard Fork

According to its roadmap, the development of the Cardano blockchain is grouped into five different eras.

The project entered the Voltaire era around May this year. This period of its development is focused on governance and designed to enable network participants and stakeholders to present and vote on Cardano Improvement Proposals (CIPs) through a staking and delegation process that has already been put in place.

This was made possible by the Chang hard fork, which took place just a few days ago.

That said, some users have raised concerns or confusion rather, that ADA holders would need to participate in the governance process to continue receiving their staking rewards.

Charles Hoskinson Chips In

In a response on X, Hoskinson clarified that users are now presented with three different options, debunking rumors that delegation is mandatory for receiving staking rewards.

He said that users wanting to withdraw their rewards have three paths ahead of them:

• A vote of no confidence
• Abstain
• Delegate to a DRep

It’s worth noting, though, that all three require action, and doing nothing doesn’t count as abstaining.

“To clarify, a user to withdraw staking rewards from the network, has to choose one of three options: a vote of no confidence, abstain, or delegate to a DRep. Wallets like lace will in the UX automatically choose abstain if a user selects delegation only thereby simplifying the experience.” – Hoskinson noted.