Hoskinson Explains Cardano’s Bill of Rights for Governance

Charles Hoskinson, the founder of Cardano, unveiled the framework for blockchain governance in his latest broadcast, presenting what he refers to as the “Bill of Rights” for the Cardano ecosystem. This initiative, which focuses on the 11 tenants of the blockchain foundation, aims to establish a constitutional foundation that will guide the development and governance of Cardano and potentially influence the broader blockchain technology.

Broadcasting live from Colorado on October 13, 2024, Hoskinson emphasized the collaborative efforts that support the program. “More than 50 workshops have been held,” he said. The program saw 1,400 people participate and the election of 63 delegates.

At the heart of Hoskinson’s announcement is a blog post titled “11 Tenants of Blockchain Towards a Blockchain Bill of Rights.” He clarified that these tenants are not limited to Cardano but are intended as a global framework that works in various blockchain applications. “These charters are intended to capture the inherent stability of these systems and the rights of their users,” explained Hoskinson, drawing parallels to human rights embodied in constitutional law.

11 Cardano Blockchain Tenants

Hoskinson provided an in-depth analysis of each of the 11 tenants, detailing their importance and practical implications for Cardano:

1. Objection to Functional Testing: “Functions cannot be slowed down or tested and will be immediately served for their intended purpose,” says Hoskinson. He likened the system to freedom of speech, emphasizing the importance of maintaining user autonomy within the system. “Activities reveal the ways users wish to engage with the system so that users are comfortable and able to do so in a way that is consistent with their purpose; this does not include testing but also warrants eligibility and processing.”
2. Predictable Transaction Costs: Hoskinson asserts that “transaction costs must be predictable and cannot be irrational,” which is important for user planning and system sustainability. He acknowledged the challenges of balancing resource allocation with user intent, especially in high-demand situations. Methods such as pricing and objective-based ledgers are being explored to address these issues.
3. Fair Recognition and Compensation: Speaking about the equal treatment of contributors, Hoskinson noted, “The opinions and contributions of all users in the program will be recognized, recorded, processed, and evaluated fairly.” This tenant aims to ensure that both maintenance and development efforts are adequately rewarded, preventing the failure of benefits within the ecosystem. He also highlighted the need for proper compensation for different roles, from agency managers to administrative stakeholders.
4. Data Portability and Value: Reflecting principles such as the European Union’s General Data Protection Regulation (GDPR), Hoskinson emphasized the importance of user consent in data management. “The value and data that users contribute or create will not be locked or processed without their consent,” he said. Promotes user control over personal property and information.
5. Resource Efficiency: “No resources will be used unnecessarily,” explains Hoskinson, highlighting the need to reduce resource consumption by designing an efficient protocol. This tenant aims to prevent system bloat and ensure the long-term viability of the blockchain. Examples include protocol optimizations that reduce transaction sizes without compromising security.
6. Safe Preservation of Value and Information: Hoskinson discussed two aspects of this tenant: preserving the integrity of information against threats such as quantum attacks and ensuring value stability through methods such as stablecoins. “The system will securely store the value and information stored within it,” he said, emphasizing both data integrity and asset stability as key components.
7. Reducing Unnecessary Resource Costs: This tenant focuses on resource optimization, ensuring that Cardano runs smoothly without wasting resources. Hoskinson highlighted the transition from Plutus V1 to V2 as an example, where transaction sizes were significantly reduced, improving overall system efficiency.
8. Fair and Responsible Management: “The system will treat users fairly and will develop in accordance with their collective will, aiming for its long-term sustainability and performance,” declared Hoskinson. This tenant emphasizes the importance of inclusive governance, where all stakeholders have a say in the evolution of the system. The upcoming Constitutional Convention in Buenos Aires aims to formalize these principles of governance.
9. Preservation of User Privacy: Emphasizing data privacy, Hoskinson said, “The privacy of users, both in terms of their actions and their data, must be preserved.” Drawing parallels with the GDPR, he advocated minimal disclosure and selective data sharing. This tenant strikes a balance between transparency and privacy, ensuring that users retain control over their personal information.
10. Complying with Local Laws and Regulations: “The system will provide users with ways to engage that don’t require them to break local laws and regulations,” Hoskinson explained. This tenant acknowledges the global nature of Cardano and the need for users to remain compliant with their specific locations.
11. Transparency, Predictability, and Verification: The end user mandates that “system performance must be transparent, predictable, verifiable, interpretable, and without asymmetries.” Hoskinson emphasized the importance of open source agreements and community verification to ensure trust and accountability within the ecosystem.

The Way Forward

Hoskinson elaborated on ongoing efforts to legalize these tenants through distributional governance. “You must have devolved governance before you go down that road because only through devolved governance can you make decisions for everyone, Voltaire’s intention,” he said. The upcoming Constitutional Conference in Buenos Aires, Argentina, scheduled for December 2024, will bring together delegates from 50 countries to finalize and ratify a constitutional text based on these tenets.

The founder emphasized the importance of this initiative beyond Cardano, suggesting that other blockchain communities may adopt similar frameworks for measuring technological innovation and ethical governance. “These tenants are heavily contested by the Cardano community […] they will act as beacons in the distance that will draw Cardano and other blockchain communities to where they want to go,” said Hoskinson.

Hoskinson ends the video by highlighting the importance of maintaining the integrity of the system over short-term gains. “We should never sacrifice the integrity of the system for the sake of short-term gain or short-term progress on some arbitrary metric like the number of tokens or acquisitions,” he asserted.

At press time, ADA traded at $0.3536.

Featured image from YouTube, chart from TradingView.com