- IOHK makes progress in making the future development of Cardano more decentralized, democratic, and sustainable
- IOHK implements new mechanisms to finance the future development of Cardano
- “Liquid democracy” would be central for the future funding of Cardano
Cardano News Today – In a recent post on the IOHK blog, researcher Bingsheng Zhang explained how Cardano’s project Catalyst would function. The project is launched as the fifth and final phase of Cardano, and it aims to make the future development of the network democratic, decentralized, and sustainable. Hence, the participation of the community is very important. A snippet of the report states:
Voltaire is IOHK’s way of establishing this capability, allowing the community to maintain the Cardano blockchain while continuing to develop it by proposing and implementing system improvements. This puts the power to make decisions in the hands of ADA holders.
Cardano (ADA) Price Today – ADA / USD
Cardano News Today – Catalyst Would Introduce a Voting and Treasury System
According to a report by CNF, Catalyst would also be introducing a treasure and voting system. Zhang said that IOHK has successfully applied the latter mechanism to Catalyst to use research, “community consensus” social experiments, and other capabilities to allow the community to create a democratic culture to maintain the sustainability of the platform. Based on that, Zhang said:
A democratic approach is an integral part of the blockchain ecosystem because it allows sustainability decisions to be made collaboratively, without relying on a central governing entity. Thus, the governing and decision-making process must be collective. This will allow users to understand how improvements are made, who makes decisions, and ultimately where the funding comes from to make these choices.
Cardano News Today – Cardano’s New Mechanism Would Allow ADA Holders to Vote Fairly
According to the researcher, Cardano will implement a mechanism with a transparent voting process. With that, ADA holders would be able to vote in a fair decision-making process. The researcher pointed out that the system would be based on “liquid democracy,” which is a hybrid model that applies the best of the representative democracy and direct democracy. Hence, users can vote for the treasure and decision-making system directly while still benefiting from expert knowledge.
There would be funds in the system, controlled by the community, which would be accumulated constantly. The funds will come from transaction feet, stake pool reward fees, and several coins minted for the fund. The funds might also receive additional contributions and donations.
Cardano is one blockchain project that spends a lot of time and resources on the development of the platform. The firm has been working towards making the platform completely decentralized. While the price performance of the digital currency has not been impressive, analysts believe the development around the project would have a positive impact on its price in the long run.