Cardano (ADA) Critical Clarification by Charles Hoskinson on Governance

Cardano recently underwent a major update called the Chang hard fork. This move, among other things, introduced new on-chain governance mechanisms that allow users to make decisions about network governance through Delegated Representatives, also known as DReps.

This has raised some questions, and Charles Hoskinson, the founder of the project, has just shed some light on pressing matters.

Cardano Government after 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 of this year. This period of its development focuses on governance and is designed to allow network participants and stakeholders to submit and vote on Cardano Improvement Proposals (CIPs) through a participation and delegation process that has already launched

This was made possible by Chang’s 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 participation rewards.

Charles Hoskinson enters

In a response to X, Hoskinson clarified that users are now presented with three different options, debunking rumors that delegation is mandatory to receive wagering rewards.

He said users who want to withdraw their rewards have three paths ahead of them:

A vote of censure Abstention Delegate to a DRep

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

“To clarify, a user to withdraw betting rewards from the network, must choose one of three options: a vote of no confidence, abstain or delegate to a DRep. Wallets as the fit in the UX they will automatically opt out if a user selects delegation simply by simplifying the experience, Hoskinson noted.

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