The Cardano community is divided over contingent staking, with some detractors labeling it as a compliance protocol to satisfy U.S. lawmakers.
Input Output CEO Charles Hoskinson dismissed these criticisms, attributing them to a misunderstanding of the concept.
“I’m still at a loss reading some of the comments on contingent staking. It’s incredible how polarized some people have become to the extent that they can not understand a basic concept and continue to misrepresent it.“
What is contingent staking?
The recent SEC enforcement action against Kraken has brought staking compliance into the spotlight.
In a live stream, the IO CEO discussed contingent staking as a protocol-level “right to refuse business.”
Stake Pool Operators (SPOs) cannot currently refuse delegators under the Cardano staking model, unlike traditional businesses. This concept allows SPOs to reject delegated tokens on a protocol level through a multi-sig setup.
“It’s not, at its core, a protocol about giving the U.S. government control over things.
Contingent staking offers different benefits, such as the ability to remove undesirable customers, align with values, and potentially implement KYC measures.
Cardano community divided
A Reddit post highlighted the shifting views within the Cardano community, raising concerns about compliance changes and what could come next.
“The point being made is that if we change it at the base layer to please America now… what other changes will we make later?”
Hoskinson criticized these viewpoints as “low information, dramatic, knee-jerk reactions,” emphasizing that contingent staking is still a concept under discussion.
The post Hoskinson: Contingent staking, why the Cardano community is pushing back can be found on CryptoSlate.
