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CIP‐1694 and Cardano Interim Constitution : Cardano Decentralized Governance 03‐08‐2024 ‐ By Bernard Sibanda

Bernard Sibanda edited this page Aug 3, 2024 · 1 revision

CIP-1694

Introduction

  • CIP-1694 is a Cardano Improvement Proposal.
  • Named after the year of the first known draft of the United States Constitution.
  • Aims to enhance decentralized decision-making on Cardano.
  • Involves the community more directly in governance.

Key Aspects

Governance Structure

  • Combines on-chain and off-chain processes for decision-making.

Community Participation

  • Emphasizes greater community involvement.
  • Gives ADA holders more influence over network changes and developments.

On-Chain Voting

  • Introduces mechanisms for on-chain voting.
  • Allows ADA holders to vote on proposals directly through the blockchain.

Enhanced Transparency

  • Aims to improve transparency in the governance process.
  • Ensures decisions are made in an open and accountable manner.

Decentralization

  • Involves a wider range of stakeholders in decision-making.
  • Seeks to further decentralize the governance of the Cardano network.

Incentives for Participation

  • Includes mechanisms to incentivize active participation.
  • Ensures stakeholders are motivated to contribute to network development.

Cardano Interim Constitution Summary

Introduction

  • Purpose: Establish governance principles and structures during Cardano's transitional phase.
  • Objective: Ensure transparent, decentralized decision-making and community involvement.

Governance Framework

Primary Components

  • Constitutional Committee: Responsible for upholding the constitution.
  • DReps (Delegated Representatives): Elected by ADA holders to represent their interests.
  • SPOs (Stake Pool Operators): Maintain the network and participate in governance.

Roles and Responsibilities

Constitutional Committee

  • Draft and propose amendments.
  • Ensure adherence to the constitution.
  • Safeguard network integrity.

DReps

  • Vote on proposals and amendments.
  • Represent ADA holders' interests.
  • Engage with the community for feedback and input.

SPOs

  • Maintain network operations.
  • Participate in governance through voting and proposal evaluation.
  • Ensure network security and decentralization.

Decision-Making Process

  • Proposal Submission: Any ADA holder can submit governance proposals.
  • Review and Discussion: Proposals reviewed by the Constitutional Committee and discussed by the community.
  • Voting Mechanism: Proposals put to vote by DReps, SPOs, and ADA holders.
  • Implementation: Approved proposals are implemented according to the constitution.

Voting System

  • Quadratic Voting: Prevents disproportionate influence by large stakeholders.
  • Thresholds and Quorums: Defined thresholds for proposal approval and minimum participation requirements.

Transparency and Accountability

  • Public Records: All governance actions and decisions recorded on the blockchain.
  • Regular Reports: Periodic reports on governance activities and network status.

Amendment Process

  • Proposal for Amendment: Any ADA holder can propose amendments.
  • Review and Voting: Amendments undergo the same review and voting process as other proposals.
  • Ratification: Amendments ratified by the Constitutional Committee and a supermajority vote.

Community Engagement

  • Feedback Mechanisms: Regular community meetings, forums, and surveys for input.
  • Education and Outreach: Initiatives to educate the community about governance processes and encourage participation.

Conclusion

  • Interim Nature: The constitution is a temporary framework, subject to evolution and improvement.
  • Commitment to Decentralization: Emphasis on increasing community control and reducing central authority.