Hoskinson describes Cardano’s Bill of Rights for Governance

Charles Hoskinson, the founder of Cardano, unveiled a framework for blockchain governance in his latest article broadcastintroducing what he calls a ‘Bill of Rights’ for the Cardano ecosystem. This initiative, centered around 11 foundational blockchain tenants, aims to establish a constitutional foundation that will guide Cardano’s development and governance and potentially influence broader blockchain technologies.

Broadcast live from Colorado on October 13, 2024, Hoskinson highlighted the collaborative efforts behind this initiative. “More than 50 workshops have already been held,” he says. 1,400 people participated in the process and 63 delegates were elected.

At the heart of Hoskinson’s announcement is a blog post titled “The 11 Blockchain Tenants Towards a Blockchain Bill of Rights.” He clarified that these tenants are not exclusive to Cardano, but are intended as a universal framework applicable to various blockchain systems. “These tenants are intended to capture the natural sustainability of these systems and the rights of their users,” Hoskinson explained, drawing parallels with the human rights enshrined in constitutional law.

The 11 Cardano Blockchain Tenants

Hoskinson provided an in-depth exploration of each of the eleven tenants and clarified their significance and practical implications for Cardano:

1. Resistance to transaction censorship: “Transactions cannot be delayed or censored and will be conducted expediently for the intended purpose,” Hoskinson said. He compared this principle to freedom of expression and emphasized the importance of maintaining user autonomy within the system. “Transactions express the ways in which users want to interact with the system, so users should be free and able to do so in a way that is proportionate to their intentions; this rules out censorship, but also requires expediency and processing.”
2. Predictable transaction costs: Hoskinson asserted that “the costs of a transaction should be predictable and not unreasonable,” which is essential for user planning and system sustainability. He acknowledged the challenges in balancing resource allocation and user intent, especially in high-demand scenarios. Mechanisms such as tiered pricing and intent-based ledgers are being explored to address these issues.
3. Fair Recognition and Compensation: Hoskinson noted that each user’s input and contributions to the system are fairly recognised, recorded, processed and assessed. This tenant aims to ensure that both maintenance and development efforts are adequately rewarded, preventing incentive failures within the ecosystem. He also emphasized the need to fairly compensate different roles, from stake pool operators to board participants.
4. Portability of data and values: Reflecting principles similar to the European Union’s General Data Protection Regulation (GDPR), Hoskinson emphasized the importance of user consent when processing data. “The value and data that users contribute or create will not be locked or processed without their consent,” he stated. He advocates user control over personal assets and information.
5. Resource efficiency: “No unnecessary resources will be spent,” Hoskinson explains, emphasizing the need to minimize resource use through efficient protocol design. This tenant aims to prevent systemic bloat and ensure the long-term viability of the blockchain. Examples include protocol optimizations that reduce transaction size without compromising security.
6. Secure Preservation of Value and Information: Hoskinson discussed the dual aspects of this tenant: preserving the integrity of information against threats such as quantum attacks and ensuring value stability through mechanisms such as stablecoins. “The system will securely maintain the value and information stored in it,” he stated, highlighting both data integrity and asset stability as crucial components.
7. Minimizing unnecessary resource expenditures: This tenant focuses on optimizing resources and ensuring Cardano runs efficiently without wasting resources. Hoskinson emphasized the transition of Plutus V1 to V2 for example, transaction sizes were significantly reduced, improving overall system efficiency.
8. Fair and representative governance: “The system will treat users fairly and develop in accordance with their collective will, aiming for its long-term sustainability and viability,” Hoskinson said. This tenant emphasizes the importance of inclusive governance, where all stakeholders have a voice in the evolution of the system. The upcoming Constitutional Convention in Buenos Aires aims to formalize these principles of governance.
9. Preserving User Privacy: Hoskinson emphasized data privacy, stating: “The privacy of users, both in their actions and their data, must be protected.” Drawing parallels with the GDPR, he advocated minimal disclosure and selective, contextual data sharing. This tenant balances transparency and privacy, allowing users to maintain control over their personal data.
10. Compliance with local laws and regulations: “The system provides users with ways to participate that do not require them to violate local laws and regulations,” Hoskinson explains. This tenant recognizes the global nature of Cardano and the need for users to remain compliant with their respective jurisdictions.
11. Transparency, predictability and verifiability: The ultimate tenant prescribes that “the operation of the system must be transparent, predictable, verifiable, interpretable and without asymmetries.” Hoskinson emphasized the importance of open source protocols and public verifiability to ensure trust and accountability within the ecosystem.

The way forward

Hoskinson described ongoing efforts to formalize these tenants through decentralized governance. “You have to have decentralized governance before you go down that path because only through decentralized governance can you make a decision for everyone everywhere, that’s the point of Voltaire” he noted. The coming one Constitutional Convention in Buenos Aires, Argentina, scheduled for December 2024, will bring together delegates from 50 countries to finalize and approve the constitutional text based on these tenants.

The founder underscored the importance of this initiative beyond Cardano, suggesting that other blockchain communities could adopt similar frameworks to balance technical innovation with ethical governance. “These tenants are being actively debated by the Cardano community (…) they will act as beacons on the distant horizon that will draw Cardano and other blockchain communities to where they want to travel,” said Hoskinson.

Hoskinson concluded the video by emphasizing the importance of maintaining the integrity of the system over short-term profits. “We must never sacrifice the integrity of the system for the sake of short-term gain or short-term progress on any arbitrary measure such as token price or adoption,” he asserted.

At the time of writing, ADA was trading at $0.3536.

Featured image from YouTube, chart from TradingView.com