Logo
Cardano Ecosystem

Finbold

02/10/2023

·

454 views


Cardano founder C. Hoskinson proposes contingent staking to meet regulatory needs 

As the crypto space comes to terms with the renewed regulatory scrutiny around staking activities, Cardano (ADA) founder Charles Hoskinson has shared a model that could align with legal...

Cardano founder C. Hoskinson proposes contingent staking to meet regulatory needs 

As the crypto space comes to terms with the renewed regulatory scrutiny around staking activities, Cardano (ADA) founder Charles Hoskinson has shared a model that could align with legal requirements.

According to Hoskinson, operators in the space can consider the contingent staking model that centers around know-your-customer practices, he said during a webcast on February 10. 

Under the model, Hoskinson noted the transaction certificate would be two-sided, meaning that both the delegate and the staking pool operator would have to sign the transaction before it is processed. Notably, under the current staking model, when an individual wants to delegate their stake to a pool, they send a transaction to the pool. 

At the same time, with contingent staking, the process is different since the transaction would be pending until both the delegate and the pool operators have signed it.  In this line, pool operators would have the opportunity to consent to the delegation before it takes place.

“It is an interesting question about starting to change staking models to accommodate regulatory nuances. <…> You can introduce a concept of contingent staking, and basically, it’s two-sided. <…> This changes a push non-consensual relationship to a bilateral consensual relationship,” he said. 

Furthermore, Hoskinson believes that with contingent staking, pool operators would be able to choose who they want to delegate to, which could help them better comply with regulatory requirements.

During the webcast, Hoskinson hinted that the Cardano community plans to write the necessary documents to introduce the concept. The papers would serve as a work product for the Cardano community and outline how contingent staking would work in practice.

His sentiments come after the United States regulator, the Securities Exchange Commission (SEC), reached a settlement with crypto exchange Kraken over the platform’s staking operations. Part of the deal will see Kraken suspend its staking services in the U.S.

Indeed, the SEC’s latest directive has resulted in criticism from the crypto space, with the agency facing accusations of attempting to stifle the sector’s growth. However, chair Gary Gensler has dismissed the notion noting that the SEC is guided by the need to protect investors.

AD

Proposals Catalyst F14 - Cast your vote, search "Otavio" in the Voting App.

If you are you using your ADA to vote in Cardano’s Project Catalyst don’t forget to voice your vote. We would be excited if you can see, comment, share and vote for us. Tip: To find them its easiest to search for "Otavio"Vote for Us


Read Original Article on Finbold

ORIGINAL SOURCE

https://finbold.com/cardano-founder-c-ho...

Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.


More from Finbold

See more
Cardano (ADA) Latest News: Why This Penny Crypto Might Produce More Gains Than ADA Did in 2021
Finbold
Cardano (ADA) Latest News: Why This Penny Crypto Might Produce More Gains Than ADA Did in 2021

yesterday at 5:00 PM

·

4 views

Related News

See more
Voting for Us - Catalyst Fund 14

Featured News

See more



    DEFAULTENGLISH (EN)SPANISH (ES)RUSSIAN (RU)GERMAN (DE)ITALIAN (IT)POLISH (PL)HUNGARIAN (HU)JAPANESE (JA)THAI (TH)ARABIC (AR)VIETNAMESE (VI)PERSIAN (FA)GREEK (EL)INDONESIAN (ID)ROMANIAN (RO)KOREAN (KO)FRENCH (FR)CZECH (CS)PORTUGUESE (PT)TURKISH (TR)