Just two months ago the cardano community bootstrapped a new era for the Cardano network as well as the entire blockchain space: Chang Hardfork 1. With this major network upgrade, all decisions around the network’s evolution and continuity is being passed from the founding entities to all ada holders. Let’s check on the bootstrapping so far and give you an update on Lido Nation participation.
The upgrade itself comes in two parts: part one for bootstrapping with some guardrails (where we are now), then part two to exit bootstrapping and remove the guardrails. One of the guardrails in place during the bootstrapping phase is the type of change request the community can make. Out of the 7 change types, only 1, the INFO action can be created by the community until upgrade #2.
On day one of the upgrade, the community was ready to test the system, introducing the first lighthearted governance action. What was the ask? To name the next hard fork the ‘Hosky Hardfork.’
A second action was introduced a couple weeks later with less of an ask, and more of a resolution–thanking the founding entity for their contribution and announcing a “celebration of Cardano’s ‘Ikigai’ or purpose.” A “YES” is intended to be a signal that DReps and the community share the same sentiment.
The most recent request, bringing the current total governance actions to 3, simply asks the question “Should K increased?”
Understanding the k-Parameter The optimalPoolCount (aka K) parameter, sets the ideal number of stake pools by influencing how rewards are distributed among them. K sets the floor, the minimum desired number of stake pools. The current value of K is set to 500. There are over 3000 pools on the Cardano network. On average, 1,200 pools participate in processing new transactions.
Since its inception, Cardano has aimed for a high degree of decentralization, believing that it is essential for security and resilience. Adjustments to the K-parameter are not taken lightly, as they have far-reaching implications for stake pool operators (SPOs) and ADA delegators alike.
The New Governance Action The latest governance action revisits one of cardano’s longest running debated parameters and issues. It’s not proposing an actual change, just trying to raise awareness of the need for the K parameter to be revisited when the bootstrapping phase is completed. You can read more about the new governance action at https://adastat.net/governances/7fd6429add8f2611ad8d48c0cc49101463093aec285faea402e8cfde78ea58d700.
The proposal is open for voting on-chain, allowing every ADA holder to participate directly in the decision-making process or delegate to a DRep to vote on their behalf.
Lido Nation Vote The Lido Nation stake pool will be voting ‘No’ on this parameter, but not because we are against raising K. Last time there was a community poll on changing we delve deep into our opinion in this article: https://www.lidonation.com/en/posts/lido-nation-votes-on-chain-for-k-parameter-and-minpoolcost-parameters/. We’re voting ‘No’ on this INFO action because it lacks specificity. We would love to see a vote with a specific ask for what K should be. Chances are, if the increase is not too high, we might cast a different vote.
Exploring Cardano Network Parameters There are over 3 dozen parameters that can be changed when the bootstrapping phase is over. In spite of this, there is NO comprehensive resource that covers, explains, and tracks these parameters. We have a catalyst explorer on the Fund 13 ballot to address this issue. The big idea is to deliver a multimedia hub featuring Cardano parameters in articles, podcasts, quizzes, & discussions–empowering the community to understand foundations & make informed governance decisions. You can read the full proposal here: https://www.lidonation.com/proposals/driving-effective-governance-in-voltaire-cardano-parameters-explorer-by-lido-nation-f13/
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