Cardano Foundation Strengthens Commitment to Governance as a DRep

Joining the community in shaping the future through active participation

The Cardano Foundation welcomes the opportunity to further engage with Cardano's governance processes as a Delegated Representative (DRep) with the ID:

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This role will allow the Foundation to participate more actively in the future of Cardano alongside the community.

Within Cardano’s governance framework, DReps hold a critical responsibility. They exercise voting rights on proposals that support a wide spectrum of developments, ranging from updating protocol parameters to the allocation of treasury funds. Any individual or entity can register as a DRep and actively decide on Cardano Governance Actions—on-chain proposals put to a vote. This inclusive approach fosters a dynamic and highly participatory governance model, empowering a broad range of stakeholders to contribute to Cardano’s evolution.

How DReps support Cardano’s governance

To prevent hostile actors from compromising Cardano’s governance system by generating multiple DReps, voting power remains proportional to each DRep’s delegated stake in ada, whereby one lovelace (0.000001 ada) equals one vote. All ada holders have the option to delegate their voting power. Ada holders can register as a DRep in order to participate directly by voting on Governance Actions, or they may delegate their voting stake to a trusted DRep to exercise voting power on their behalf. Therefore, DReps may vote on behalf of community members who delegate their ada to them.

This framework fosters an environment where active community members possess strong incentives to articulate their values, intentions, and long-term goals for Cardano. By clearly communicating their vision, DReps aim to attract delegated voting power from community members who prefer less direct engagement in governance processes. This dynamic cultivates a diverse and representative leadership landscape within the Cardano ecosystem.

This system exhibits fluidity—should an ada holder disagree with the voting decisions of their chosen DRep, they retain the power to seamlessly transfer their voting stake to an alternative DRep. This design principle combines the strengths of direct democracy with a flexible form of indirect participation. It empowers ada holders with voice and choice in the governance process, fostering accountability and responsiveness among DReps.

Following the next hard fork, projected for deployment in January 2025, stake in Cardano expands beyond its existing role in block production and rewards acquisition. By delegating ada to a DRep, stakeholders can directly shape the trajectory and development of the Cardano blockchain. Each vote assumes critical importance in ensuring Cardano remains decentralized and community-driven. Learn more about the role of DReps in Cardano’s governance in CIP 1694.

Convergence of DRep and Constitutional Committee Member roles

The Foundation also holds a position on the (interim) Constitutional Committee (CC). This committee dedicates its focus to constitutional matters of Cardano, which align with the Cardano Constitution (the current Interim Constitution being the version in effect). The CC's primary purpose lies in assessing the constitutionality of a given Governance Action, not in otherwise expressing committee opinions. It's important to understand that these are distinct roles with separate responsibilities.

To maintain transparency, the Foundation will clearly communicate its voting rationale for all voting decisions across both DRep and CC activities. We will continually assess possible challenges from the duality of roles and, of course, abide by the applicable rules in the adopted Cardano Constitution.

What to expect from the Foundation DRep

In alignment with the principles and values articulated in Our Cardano, the Foundation commits to upholding these tenets and exercising its DRep voting accordingly. To ensure the organic growth of registered voting power and equitable DRep participation, the Foundation will initially abstain from delegating ada held in its own wallets to its designated DRep. As the network progresses towards the hard fork, we will continue to monitor the distribution of registered voting stakes and reassess this strategy as needed to ensure minimal impact on decentralization.

Community members who resonate with the Foundation's vision and values can delegate voting power to our DRep. We remain committed to fostering a decentralized, secure, and resilient Cardano ecosystem for everyone. Instructions on how to delegate voting power can be found here.

Stay up-to-date: The Foundation will continue to provide updates on our DRep activities and voting decisions. We encourage everyone to participate in Cardano's governance process and make their voices heard—let’s build the future of Cardano together.