Charles Hoskinson, the founder of Cardano (ADA), dispelled misconceptions about the proposed contingent staking model.
Following the SEC’s crackdown on Kraken's staking program, Hoskinson proposed implementing contingent staking on Cardano.
The current staking model does not prevent Stake Pool Operators (SPOs) from denying services to their clients. Thus, the SPOs cannot remove customers who do not conform to their rules.
Meanwhile, the contingent staking model will allow SPOs to choose which clients they wish to serve. Hoskinson believes this multi-sig setup will aid the pool operators in meeting the compliance standards demanded by the US regulators.
However, the proposed model was criticized by the ADA community. The community members argued that implementing contingent staking will lead to a KYC regime on the Cardano ecosystem.
In response, Hoskinson claimed that critics were polarized on his proposal. He claimed that contingent staking will neither replace conventional staking nor remove private pools. He further stated,
“A marketplace of SPOs would still exist and allow people to continue to delegate to their preferences, including normal stakepools.”
Hoskinson also stressed the dangers of allowing ISPOs to operate without implementing entry checks.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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