Proposal Details

Info Action
Governance Action Type
ACTIVE

Unequal Power

5 likes
3 dislikes
6 comments
Submitted: 31 Jan 2025, 22:38 UTC (Epoch 537)
Updated: 29 Apr 2025, 21:40 UTC (Epoch 554)
# ID:213
ma

madfolio

Submitted: 31 Jan 2025, 22:38 UTC (Epoch 537)
Updated: 29 Apr 2025, 21:40 UTC (Epoch 554)

Abstract

Decentralisation is about distributing power as much as possible. With the current voting power given to DReps by delegators there is a danger that the DReps that wield the most ADA wield the most power.

While this is logical at first glance this will result in an oligopoly of a few select DReps.

In short I suggest a limit to the number of ADA that can be delegated to an individual DRep.

Motivation

We need to ensure enagagement from a wider number of views and real decentralisation. Always ending up with a voting block with handful of DReps that hold complete power is no way to decentralise.

Rationale

Decentralisation in a potential oligopoly.

Supporting Links

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Comments (6)

Apr 25, 2025, 08:31 AM UTC

This is setup as a plutocracy, not a democracy, so this doesn't make a lot of sense. Power is decentralized based on skin-in-the-game, and matches risk to those who receive reward. Your suggestion would increase risk for those that hold ADA based on the whims of those without skin-in-the-game. This leads to multiple risks sets. Basically the problem of the passenger in the back of the plane yelling, "I think I'm more qualified to fly the plane! Who's with me?!??" - It is likely the mob can be riled up, as mobs-without-skin-in-the-game are highly incentivized to cause destruction.

igatsam
Apr 19, 2025, 02:49 PM UTC

That’s an interesting and important angle—let’s explore what that could mean:


  1. Stake Pool Centralization

Power imbalance risk: Although Cardano is designed to be decentralized through stake pool operators, a small number of pools or entities could still end up controlling a large portion of the stake.

By 2026, if delegation habits don’t change or major players dominate rewards, we might see “decentralization theater”—where it looks decentralized, but real control is unequal.


  1. Governance Concentration (Voltaire Era)

Cardano’s governance system will rely on on-chain voting and treasury funding.

Those with large ADA holdings will have more voting power, similar to a plutocracy model.

By 2026, this could lead to:

Whales or organizations influencing protocol changes.

Smaller holders feeling underrepresented.

Governance capture if voter turnout is low or apathetic.


  1. IOHK / Emurgo / Cardano Foundation Influence

Even though Cardano aims for community governance, the three founding entities still hold a lot of influence.

If by 2026, real control hasn't shifted toward the broader community, it may raise concerns of founder centralization.


  1. Geopolitical or Socioeconomic Imbalance

Cardano’s focus on developing nations (e.g. Africa) is noble, but if the technical and financial control remains in the hands of Western institutions or whales, it could result in:

Local populations using the system without governing it.

Unequal benefit extraction, where tech is built “for” rather than “with” people.


In Summary: “Unequal Power Cardano 2026” Could Mean...

Centralization in stake delegation.

Governance captured by whales.

Founding orgs holding outsized influence.

Socioeconomic imbalances between developers and end users.

Want me to turn this into a short essay or article-style piece? Or explore how Cardano could prevent this imbalance?

nonirox
Feb 12, 2025, 08:52 AM UTC

agree for a Hard Cap for Dreps. I can create more Dreps or more self voters, would mean more decentralized way of voting.

escopo_final
Feb 4, 2025, 10:03 PM UTC

I desagree DREP's will beat against whales, they gather a lot of ada of small fishes,

stakerd
Feb 1, 2025, 06:31 AM UTC

Not totally in favour of a hard cap. Although I would support a percentage cap on DREP's, i.e., DREP cannot have more then 5% of total voting power. The comunity should confirm what that percentage cap should be.

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