Cardano founder Charles Hoskinson shed light on Improvement Proposal CIP-1694 which he claimed will boost a new era of governance with decentralization in its decision-making.
For those new, CIP-1694 is an on-chain decentralized governance mechanism for Voltaire, touted as “a wake-up call for the entire cryptocurrency industry”, by the Cardano founder.
The CIP has several other aspects that will make Cardano’s transition into full decentralized governance smoother. These include introducing a constitutional committee and features to enable the creation of a community-controlled treasury.
Recently, IOG, EMURGO, and the Cardano Foundation announced the successful applicants for CIP-1694 workshop grants. The workshops, which will run from May through July, will examine the most recent changes to Cardano’s on-chain governance that CIP-1694 has suggested.
Hoskinson in the latest podcast emphasized the need for increasing decentralization and how it might help in setting regulatory standards in the future.
Decentralization metrics, in his opinion, could develop into a significant part of regulatory standards, acting as a yardstick for judging the legality and regulatory treatment of diverse digital assets.
The IOG head suggested that a more decentralized digital asset might be given similar status to that of the Transmission Control Protocol [TCP] for the Internet.
He also foresaw a potential regulatory gap wherein increasingly concentrated crypto assets would be subject to negative legal restrictions. In his closing remarks, the founder stressed the value of self-sovereignty in the crypto industry.
Speaking about decentralization, the Cardano networking layer might be more decentralized than previously thought.
Cardano’s Nakamoto Coefficient Is Now The Highest
The Nakamoto Coefficient, often known as the MAV [minimum attack vector], is what determines how decentralized validator nodes are in a PoS blockchain. MAV is the minimum number of independent parties that must come together to successfully attack the blockchain.
The greater the Nakamoto Coefficient, the more decentralized the network is expected to be. It represents the smallest number of entities [like miners or validators] that together control more than 50% of the power [like computing power in proof of work or proof of stake].
At present, Cardano has a MAV of 38, considered to be the highest coefficient among all blockchains.
In related news, Cardano’s DeFi ecosystem scored a new feat when the total value of ADA tokens staked on the network crossed 430 million, data from DeFiLlama showed.