Proposal Details
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Enhancing Cardano Governance: Addressing the 100k ADA Requirement for Proposals
brodystringer
Abstract
This proposal addresses the exclusion of ADA holders from submitting on-chain governance proposals due to the 100k ADA staking requirement. This exclusion, based on economic status, is contrary to the principles outlined in the Cardano draft constitution, particularly Article 2, Section 2, and Article 3, Section 6. These articles guarantee ADA holders the right to participate in governance processes and ensure transparency and protection from undue influence. While the 100k ADA staking requirement is currently necessary to prevent spam and DDOS attacks, it inadvertently excludes many ADA holders, undermining the inclusivity of the Cardano ecosystem. This proposal acknowledges the temporary necessity of this requirement but emphasizes the need for more inclusive methodologies in the future. The proposed solutions include short-term measures, such as centralized KYC, crowdfunding within the GovTool DApp, and DRep-based submission methods, as well as the long-term implementation of DIDs (decentralized identifiers) to enable trustless KYC. These solutions aim to ensure broader participation in governance without compromising the blockchain's security and integrity, ultimately aligning the governance process with the Cardano ethos of inclusivity.
Motivation
The Cardano blockchain's governance model is intended to be inclusive, providing all ADA holders with the opportunity to participate in decision-making processes. However, the current 100k ADA staking requirement for submitting on-chain governance proposals creates an exclusionary barrier based on economic status. This contradicts the Cardano draft constitution, specifically: Article 2, Section 2: "Members of the Cardano community who own ADA, as well as their appointed designees, are entitled to access and participate in the on-chain decision-making processes of the Cardano Blockchain ecosystem, including voting and taking part in on-chain governance regarding the Cardano Blockchain." Article 3, Section 6: "All owners of ADA shall have the right to ensure that the process for participating in, submitting, and voting on on-chain governance actions is open and transparent and is protected from undue influence and manipulation." These constitutional guarantees are essential to the ethos of Cardano, which is founded on principles of decentralization, transparency, and inclusivity. The current 100k ADA staking requirement, while necessary to prevent malicious activities such as spam and DDOS attacks, excludes a significant portion of ADA holders from participating in governance. This exclusion is not only a practical concern but also an ethical issue that undermines the inclusive nature of the Cardano ecosystem. The motivation behind this proposal is to address this exclusion and align the governance process with Cardano's foundational principles. The proposal recognizes the need for the 100k ADA staking requirement in the current technological context but insists that this requirement must be temporary. The long-term goal is to implement more inclusive methodologies that allow for broader participation without compromising the security and functionality of the blockchain. Problem Statement: Exclusion of ADA Holders: The 100k ADA staking requirement effectively bars many ADA holders from submitting governance proposals, violating the inclusive principles outlined in the Cardano draft constitution. Risk of Malicious Activities: The current system is designed to prevent spam and DDOS attacks, but it inadvertently creates economic barriers that exclude a large portion of the community. Ethical and Practical Concerns: The exclusionary nature of the current governance submission process is at odds with the Cardano ethos of decentralization and inclusivity. Purpose of the Proposal: This proposal aims to create a governance system that balances the need for security with the principles of inclusivity and fairness. By introducing alternative methods for submitting governance proposals, the proposal seeks to expand participation while maintaining the integrity of the Cardano blockchain.
Rational
The rationale for this proposal is rooted in the need to reconcile the current governance process with the principles of inclusivity and fairness as outlined in the Cardano draft constitution. The 100k ADA staking requirement, while necessary to protect the blockchain from spam and DDOS attacks, creates an unintended consequence: it excludes a large portion of ADA holders from participating in governance. This exclusion contradicts the core values of Cardano, which emphasize open and transparent participation for all community members. This proposal acknowledges the practical reasons for the staking requirement but argues that it should only be a temporary measure. The long-term goal is to implement more inclusive methodologies that allow for broader participation without compromising the security and functionality of the blockchain. Short-Term Solutions: Centralized KYC: A temporary centralized entity could perform KYC on individuals, allowing them to submit governance proposals. This approach would ensure that each person is limited to one proposal at a time, reducing the risk of spam while expanding participation. Crowdfunding in GovTool DApp: A crowdfunding feature would enable ADA holders to pool their resources to meet the 100k ADA requirement. This method ensures that individuals with smaller stakes can still contribute to governance proposals, fostering a more inclusive environment. DRep-Based Submissions: Allowing DReps with significant voting power to submit proposals ensures that only those with substantial community support can introduce governance actions. This reduces the overall load on the blockchain while maintaining the integrity of the governance process. Long-Term Solution: The implementation of DIDs represents the ideal solution to the problem of exclusion. DIDs would enable trustless KYC, allowing each verified individual to submit one proposal at a time with a lower ADA staking requirement. This method preserves the security of the blockchain while eliminating the economic barriers currently in place. This proposal recognizes the necessity of the 100k ADA staking requirement in the current technological context but insists that this requirement must be temporary. By implementing the short-term solutions proposed here and moving towards the adoption of DIDs, Cardano can create a governance system that is both secure and inclusive. This will not only align with the Cardano constitution but also uphold the broader ethos of the Cardano community, ensuring that all ADA holders have a voice in the governance process.
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