Cardano’s founder facing criticism for his new staking model

Charles Hoskinson facing criticism over his newly proposed “contingent staking model”. Hoskinson said that people are not trying to understand this model & opposing blindly. 

Charles Hoskinson is the founder of Cardano blockchain and CEO of the Cardano engineering team Input Output Hong Kong Global (IOG). Hoskinson was also one of the contributors to the Ethereum project but later he stepped down from the Ethereum project & founded Cardano blockchain as a rival of the Ethereum blockchain but with a different concept in Q3 2017. Hoskinson aimed to make Cardano a best commercial blockchain network, unlike Ethereum which is a non-profit public blockchain network.

Just 5 days ago, Cardano founder Hoskinson proposed a new staking model named “contingent staking”. He explained that the new staking model will force all the SPOs & stakers to go through a KYC procedure and also a two-sided transaction certificate system.

Many people in the Crypto community noted that such efforts by the Cardano founder will only bring a centralised nature & additional hurdles for people and that will further degrade the confidence of the crypto stakers in the Cardano Blockchain ecosystem.

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On 16 Feb 2023, Hoskinson took to Twitter to bring clarity on the newly proposed staking model and said that people are criticising him without knowing the newly proposed staking model. 

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. (1/10)

— Charles Hoskinson (@IOHK_Charles) February 16, 2023

First of all, Hoskinson confirmed that all kinds of staking pool operators (SPOs) & individual stakers will remain unaffected but first they will require to go via the KYC barrier. 

Further, Hoskinson indirectly dragged the matter of the Kraken-SEC case, a settlement with a $30 million fine over crypto staking services. Hoskinson said that such changes in the staking model will help to survive the Crypto blockchain network under a very high compliance environment.

Opponents of this concept offer no solution for how actors like governments, universities, regulated entities, not for profits, and others who could and sometimes actually do run stakepools can do so and stay in compliance with local regulations. I guess they don't matter? (3/10)

— Charles Hoskinson (@IOHK_Charles) February 16, 2023

In short, Hoskinson believes a new staking model with a mandatory KYC system will remove all the legal hurdles that Crypto staking service providers are facing nowadays in the US. 

Read also: Binance believes ChatGPT has potential to push crypto adoption

Cardano’s founder facing criticism for his new staking model

 

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