Input Output (IO) CEO Charles Hoskinson emphasizes the importance of strong governance in the cryptocurrency space to prevent incidents like the collapse of FTX exchange. Speaking at IO ScotFest, Hoskinson highlighted the significance of Cardano’s governance phase, Voltaire, in ensuring integrity and fairness. He noted that governance rules play a crucial role in eliminating human biases and promoting transparency in daily operations.
IO ScotFest: The age of Voltaire event took place in Edinburgh between Nov. 18-19, shedding light on the development and future prospects of Voltaire. Hoskinson discussed the key elements of good governance, focusing on representation, consent, and community involvement.
Improving Governance with Cardano
IO recently introduced Cardano Improvement Proposal (CIP) 1694 on Github to enhance the decentralized decision-making process within the Cardano ecosystem. The proposal aims to increase on-chain participation, improve treasury transparency, and introduce a constitution to solidify guiding principles on the blockchain. Hoskinson emphasized the importance of community feedback in shaping CIP 1694, with workshops planned for Q1 2023 for further refinement.
Discussing the role of constitutions in governance, Hoskinson highlighted the need for clear rules to ensure basic rights and principles are upheld. He envisions utilizing blockchain technology to create a “nomic machine” that embeds the constitution at the transaction level.
Despite the challenges of balancing decentralization and institutional governance, Hoskinson believes that institutions are necessary for effective governance. The formation of the Cardano Member Based Organization (MBO) aims to unify diverse interests and steer the project towards success.
Looking Ahead
While the implementation of Voltaire will be a multi-year process, Hoskinson remains committed to the vision, with IO investing millions to support its development. He acknowledges the fluid nature of governance models, welcoming community input to shape the future of Cardano. Hoskinson encourages the community to embrace challenges and mistakes as part of the collective journey towards a stronger governance system.
