Cardano (ADA) Charles Hoskinson on Treasury Voting and Blockchain Governance

By March 2, 2020 Ethereum
Click here to view original web page at thecurrencyanalytics.com

By launching governance, Charles Hoskinson opines that they will be able to sort the issues of clients disliking technology due to change. When launching governance, he opined that two different categories are to be tackled. One category is the idea of updating the protocol itself. This can be a change either to the network, to the ledger rules, or consensus rules of the system.

The other category of changes in the enhancement of the system. And, this can be about creating more features and functionality. We want to create a client. We want to create a light client. We want to support a new platform like Windows; it could be that we want to go and deploy a thousand ATMs in Ethiopia to create more cash in and cash out points with our system. Now both of these categories of governance are equally important.

The corporation cares about the first one, stability. The consumer cares about the second one. The second one is what drives utility, use case, and value in the underlying token for the system. So, using treasury voting models, you can accommodate both sides pretty adequately.

Sydney Ifergan, the crypto expert, tweeted: “It is good to look at it two ways Cardano (ADA) in terms of Corporation and Consumer. Each of them has different expectations on the blockchain indeed. Charles Hoskinson thinks 360 degrees!”

Cardano (ADA) Charles Hoskinson on Corporations and Consumers

I think so corporations want to make sure that you want a process for the first, but what gets people interested in the process. Making people participate in the process is the second part. You want to make sure that you have high participation incentives to participate in the system. Or else, you end up having very, very small tyrannies of the minority. Only a little group of people end up influencing the entire platform.

Like for example in a hard fork where only 8 to 10% of the people eligible to vote, voted in that for the fork. For example, the people on the Ethereum Classic stated that it was not legitimate as the voting did not have a majority representation. So, it is not just good enough to have these systems. You have to cover all the other stuff. And, then you also have to get high participation and do other stuff. You got to have a stable system.

Cardano (ADA) Charles Hoskinson on Stability of blockchain Systems

The stability makes it a desirable target for enterprises to build products. Ultimately, we live on the internet of blockchains. So, you are not going to have a system of having just one blockchain rule them all. You are going to have blockchains wired together. And they are going to talk to each other.

So, it is entirely possible; we are going to live in a world where corporations have two or four different blockchains that they are dealing with. Some of their internal systems may be fabric connected to a public system. Then there is a free flow of assets information and Metadata between these systems for them to function properly.

Leave a Reply