Cardano Founder Slams Critics of His Contingent Staking Model Proposal

Hoskinson says critics of his contingent staking model are polarized to the extent that they can’t understand a basic concept.

In a tweet today, Cardano founder Charles Hoskinson reacted to critics of his recently proposed contingent staking model.

Hoskinson’s Contingent Staking Model

Recall that following the SEC’s enforcement actions on cryptocurrency staking in the US, Hoskinson proposed the contingent staking model to align the service with legal requirements.

Hoskinson proposed in a February 10 webcast that companies offering crypto staking services should consider the contingent staking model, which complies with global know-your-customer (KYC) standards. 

According to Hoskinson, staking transaction certificates under the new model will be two-sided, requiring both the stake pool operator and delegate to sign the transactions before it is processed.

It is noteworthy that the proposal contradicts the existing staking model, which only requires delegates to send their stake directly to the pool. Through the new model proposed by Hoskinson, pool operators will need to consent to the delegation before it occurs.

Hoskinson Slams Critics of His Staking Model

However, several cryptocurrency proponents have criticized the contingent staking model, saying the proposal will only implement a KYC regime on Cardano. Reacting to criticism, Hoskinson said these critics are polarized and are committed to misrepresenting the proposed model.

“Opponents of this concept [contingent staking] offer no solution for how actors like governments, universities, regulated entities, not-for-profits, and others who could and sometimes actually do run stake pools can do so and stay in compliance with local regulations. I guess they don’t matter?” he said. 

Hoskinson further slammed critics for not understanding the dangers of allowing Initial stake pool offering (ISPO) to operate without entry conditions.  

For clarity purposes, Hoskinson noted that contingent staking does not implement a know-your-customer regime on the leading blockchain. He asserted that the model does not replace normal staking or eliminate private pools.

“Contingent staking does not implement a KYC regime on Cardano. It does not replace normal staking. It does not remove private pools. A marketplace of SPOs would still exist and allow people to continue to delegate to their preferences, including normal stakepools.”

Hoskinson asserted that Cardano would continue to have a marketplace of stake pool operators that would allow people to stake according to their preferences.

Cardano founder urged critics to stop dramatically reacting to issues not codified in Cardano Improvement Proposal (CIP). 

Hoskinson’s reaction comes days after he said SEC chairman Gary Gensler could not destroy the crypto industry.