Cardano’s blockchain took a major step forward with the Chang hard fork on September 1, 2024. This marks the network’s entry into the Voltaire era, ushering in new governance systems. Users can now participate in decision-making, delegate votes to representatives (DReps), or opt out entirely. But this shift has also sparked concerns among ADA holders. Will staking rewards depend on governance involvement?
Founder Charles Hoskinson addressed these worries, confirming that non-participation in governance will not affect staking rewards. ADA holders can still delegate their stake to pools and receive rewards, just as before.
More Choices, Same Rewards for Cardano Holders
The Chang hard fork expanded the governance model, offering Cardano holders a choice. In addition to traditional stake delegation, users can delegate their voting rights to DReps, cast a no-confidence vote, or abstain from voting altogether. Importantly, abstaining won’t penalize users—Hoskinson was clear that rewards remain intact, no matter the level of participation.
For those seeking a streamlined experience, wallet providers like Lace are making it easier. They now include options that automatically select the “abstain” feature for users who prefer to remain hands-off. This ensures a simple and smooth staking experience while maintaining full access to rewards.
The new governance system on Cardano offers ADA holders a range of choices. Those who prefer not to participate in governance can choose to abstain, allowing them to opt out of voting while still receiving staking rewards. Another option is to cast a vote of no confidence, where users automatically vote “yes” on any no-confidence motions and “no” on all other governance proposals. For those who wish to be involved but not manage the voting process directly, they can delegate their voting power to a decentralized representative (DRep) to handle decisions on their behalf.
Before Hoskinson’s statement, there were fears that users who did not vote would lose their rewards. This concern stemmed from early discussions around CIP-1694. Hoskinson has dispelled this misconception, ensuring that the new system simply gives more flexibility, not added pressure. Users can engage with governance, or not, while still enjoying the benefits of staking.
