Cardano News: ADA co-founder backs contingent stake amid increasing FUD

Cardano News: Charles Hoskinson, Cardano Co-founder, has voiced his dismay at the stubborn attitude of people regarding staking. He also stated that they are misrepresenting contingent stake, which he announced last Wednesday for Cardano.
He clarified that a KYC regime was not implemented on Cardano via contingent staking and does NOT replace standard staking. It does not eliminate private pools. There would still be a market in SPOs that people could use to delegate according their preferences, including to common stake pool.


Hoskinson takes on SPOs
SPOs engage with rivals and charge you for your delegation. They are a valuable, but voluntary service provider similar to bitcoin mining pool. This helps improve the network’s quality, and reduce reward variance, Hoskinson said in the thread.
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He expressed frustration with opponents to CS and said that they don’t seem understand the potential dangers associated with another staking mechanism called “Initial Staking Pool Offering” (“ISPO”) without proper entry conditions.
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Cardano Co-founder Announces Contingent Staking
Charles Hoskinson (the founder of Cardano) proposed a new model to comply with legal requirements, amid increased regulatory scrutiny surrounding cryptocurrency staking activities. Hoskinson proposed the “contingent Staking” model that would include KYC practices.

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This model would require both the delegate as well as the operator of the staking pool to sign a two-sided transaction certification before the transaction can be processed. This is in contrast to the current staking model where the delegates send a transaction directly to the pool. The transaction would be pending until both the parties sign it, which gives pool operators the opportunity to consent to the delegation. Hoskinson stated the Cardano community will create the documents necessary to introduce the concept. These documents would outline how contingent stake would work in practice.

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