Charles Hoskinson, the founder of Cardano, responded on Twitter to some of the “misrepresentations” surrounding the concept of contingent staking.
In the tweet, Hoskinson said he finds it hard to believe how people cannot understand a “basic concept”.
According to him, Contingent staking does not implement a KYC regime on Cardano nor does it replace normal staking or private pools. “A marketplace of SPOs would still exist and allow people to continue to delegate to their preferences, including normal stakepools”.
It seems the opposition mainly stems from how contingent staking delegators and pool operators would have to comply with additional entry requirements and contracts, which would reduce their influence over users’ funds.
Opponents of CS don’t seem to understand how dangerous an ISPO is without entry conditions and contracts prior to getting customer funds. They also want to remove all agencies of SPOs claiming they are apparently a public good!?
Under contingent staking, delegators will have the option to choose who they want to delegate to, which could help them better comply with regulatory requirements
It all began when Hoskinson outlined a model that could align with legal requirements in a webcast on February 10.
The delegate and the staking pool operator would both need to sign the transaction before it could be completed, he said, adding that the transaction certificate would be two-sided.
At the same time, contingent staking involves a separate procedure because the transaction would not be final until it had received the approval of the pool managers and the delegate. This line would give pool operators the chance to approve the delegation before it happens.
Cardano Founder Wants Complying With Legal Requirements
According to Hoskinson, contingent staking would provide pool operators the freedom to pick who they wish to delegate to, which might make it easier for them to meet legal requirements.
Furthermore, Hoskinson made a suggestion during the webcast that the Cardano community intended to develop the required documentation to present the idea.
The papers would act as a work product for the Cardano community and provide an explanation of how contingent staking would function in real-world scenarios.
His remarks come as the US regulator, the Securities Exchange Commission [SEC], and crypto exchange Kraken have reached an agreement on the platform’s staking operations. The latter’s staking services in the U.S. will be suspended as part of the agreement.