Hoskinson Details Cardano’s Bill Of Rights For Governance

Charles Hoskinson, founder of Cardano, unveiled a blockchain governance framework in his latest work broadcastproviding what he refers to as a “bill of rights” for the Cardano ecosystem. Centered around 11 core blockchain tenants, this initiative aims to create a constitutional foundation that will guide the development and management of Cardano and potentially influence broader blockchain technologies.

In a live broadcast from Colorado on October 13, 2024, Hoskinson emphasized the collaborative efforts underpinning this initiative. “More than 50 workshops have already been held,” he said. The process witnessed the participation of 1,400 individuals and the election of 63 delegates.

At the heart of Hoskinson’s announcement is a blog post titled “The 11 Blockchain Tenants Towards a Blockchain Bill of Rights.” He explained that these tenants are not exclusive to Cardano but aim to be a universal framework applicable to different blockchain systems. “These tenants are intended to capture the natural continuity of these systems and the rights of their users,” Hoskinson explained, drawing a parallel with human rights enshrined in constitutional law.

The 11 tenants of the Cardano Blockchain

Hoskinson provided an in-depth exploration of each of the eleven tenants, explaining their importance and practical implications for Cardano:

1. Resisting transaction censorship: “Transactions cannot be slowed down or censored, and will be served quickly for their intended purpose,” Hoskinson said. He likened this principle to freedom of expression, stressing the importance of maintaining user independence within the system. “Transactions express the ways in which users want to engage with the system, so users must be free and able to do so in a way that suits their intentions; this excludes censorship but also requires expediency and manipulation.
2. Predictable transaction costs: Hoskinson emphasized that “transaction costs must be predictable and cannot be unreasonable,” which is essential for user planning and system sustainability. He acknowledged the challenges of balancing resource allocation and user intent, especially in high demand scenarios. Mechanisms such as tiered pricing and intent-based ledgers are being explored to address these issues.
3. Fair Recognition and Compensation: When addressing fair treatment of contributors, Hoskinson noted that “every user’s input and contributions to the system will be recognized, recorded, processed, and evaluated fairly.” This tenant seeks to ensure that maintenance and development efforts are appropriately rewarded, preventing failure of incentives within the ecosystem. It also highlighted the need to fairly compensate different roles, from equity pool operators to those involved in governance.
4. Data portability and value: Reflecting similar principles to the EU’s General Data Protection Regulation (GDPR), Hoskinson emphasized the importance of user consent in data processing. He stated that “the value and data that users contribute or create will not be locked or processed without their consent.” It calls for user control over personal assets and information.
5. Resource efficiency: “No resources will be spent unnecessarily,” explained Hoskinson, highlighting the need to minimize resource use through efficient protocol design. This tenant aims to prevent systemic bloat and ensure the long-term viability of the blockchain. Examples include protocol improvements that reduce transaction sizes without compromising security.
6. Secure preservation of value and information: Hoskinson discussed the dual aspects of this tenant: maintaining the integrity of information against threats such as quantum attacks and ensuring the stability of value through mechanisms such as stablecoins. “The system will securely preserve the value and information stored in it,” he said, stressing data integrity and asset stability as important components.
7. Reduce unnecessary resource overhead: This tenant focuses on resource optimization, ensuring that Cardano runs efficiently without wasting resources. Hoskinson highlighted the move from Plutus V1 to V2 as an example, where transaction sizes were significantly reduced, enhancing overall system efficiency.
8. Fair and representative governance: Hoskinson declared that “the system will treat users fairly and will evolve according to their collective will, with a view to its long-term sustainability and viability.” This tenant emphasizes the importance of inclusive governance, where all stakeholders have a voice in the evolution of the system. The upcoming Constitutional Convention in Buenos Aires aims to formalize these principles of governance.
9. Maintaining user privacy: Hoskinson emphasized data privacy, “Users’ privacy must be maintained, both in terms of their actions and their data.” Drawing parallels with the GDPR, he called for minimal disclosure and selective sharing of contextual data. This tenant addresses the balance between transparency and privacy, ensuring that users retain control over their personal information.
10. Compliance with local laws and regulations: “The system will provide users with ways to participate that do not require them to break local laws and regulations,” Hoskinson explained. This tenant recognizes the global nature of Cardano and the need for users to remain compliant with their respective jurisdictions.
11. Transparency, Predictability, and Verifiability: The end tenant states that “system operation should be transparent, predictable, verifiable, interpretable, and without any discrepancies.” Hoskinson stressed the importance of open source protocols and public verifiability to ensure trust and accountability within the ecosystem.

The way forward

Hoskinson detailed ongoing efforts to formalize these tenants through decentralized governance. “You have to have decentralized governance before you go down this road because only through decentralized governance can you make a decision for everyone everywhere, and that is Voltaire’s goal,” he said. The upcoming Constitutional Convention in Buenos Aires, Argentina, scheduled for December 2024, will bring together delegates from 50 countries to finalize and approve the constitutional text based on these tenants.

The founder stressed the importance of this initiative beyond Cardano, noting that other blockchain communities could adopt similar frameworks to balance technical innovation with ethical governance. “These tenants are being actively discussed by the Cardano community (…) and will act as beacons on the far horizon that will pull Cardano and other blockchain communities to where they intend to travel,” Hoskinson stated.

Hoskinson concluded the video by highlighting the importance of maintaining system integrity over short-term gains. “We should never sacrifice system integrity for short-term gains or short-term progress on some arbitrary metric like token price or adoption,” he emphasized.

At press time, ADA was trading at $0.3536.

Featured image from YouTube, chart from TradingView.com