Welcome to the Cardano Community Digest!
Published by the Cardano community team every two weeks, this Digest will provide you with news, updates and events about the project and ecosystem!
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Focal points of the week
Cardano Governance Gains Increased Community Engagement
Responding to community input, the CIP authors have released an updated version of CIP-1694 on March 13th, 2023. While some aspects of the updated version have received varying opinions, it is encouraging to witness numerous community members from different platforms actively participating in constructive conversations on Cardano’s on-chain Governance and CIP-1694.
Some of the core updates include:
- A term limit for the constitutional committee (CC).
- Two new pre-defined DReps: abstain and no-confidence.
- A new voting action with no on-chain effect: poll.
- Script-based DReps
- No more Active Voting Stake Threshold (AVST)
- New bootstrapping phase
- A post-bootstrapping phase
- Incentive to delegate to DReps
- DReps incentives
For a concise description of all core updates see: https://twitter.com/_KtorZ_/status/1635410495514759169
In the following tweet, Matthias Benkort goes the extra mile to provide valuable insights on how rewards are distributed on Cardano, including the widely debated “rewards locking” incentives. The purpose of this Twitter-thread is to help the community gain a better understanding of these concepts and their impact. Regardless of whether you’re new to the Cardano ecosystem or a long-time enthusiast, Benkort’s tweet provides a valuable resource that can help you stay up-to-date and engaged.
CIP-1694 in a Nutshell
To gain a better understanding of CIP-1694, including the newly proposed updates, we invite you to check out this helpful visual representation, courtesy of community member Hornan. The goal of this visual source is to make it more accessible for all individuals to grasp the purpose of the CIP in a clear and concise way.
Souce: CIP-1694 in a Nutshell - #6 by Hornan
How will we govern Cardano in the Voltaire era?
A Twitter Space was organized on March 18th by the Summon Platform, Bullish Dumpling, Matthias Benkort, and Adam Dean. During this highly informative event, they discussed CIP-1694 and its updates to eliminate any fear, uncertainty, or doubts in the community. find here the link to the recording of the Twitter Space: https://twitter.com/SummonPlatform/status/1635955327349800960?s=20
Dynamic P2P is now available on mainnet
We’re thrilled to announce that the latest release of Cardano’s node software, version 1.35.6, includes dynamic peer-to-peer (P2P) functionality. This exciting update is designed to enhance the network’s performance, resilience, and decentralization, which, in turn, sets the stage for further innovation on the Cardano blockchain.
One of the key benefits of this update is the increased decentralization of the network. By introducing P2P support, nodes can now connect with each other directly, without the need for a central server. This improvement adds another layer of security and robustness to the Cardano ecosystem.
For those interested in trying out this new feature, enabling P2P support is as easy as changing the “EnableP2P” setting to true and updating the configuration file with the new connection layout. Of course, the old connection method will still be available for those who prefer it. To learn more about this exciting release, check out the link to the official release on GitHub: Release Cardano Node 1.35.6 · input-output-hk/cardano-node · GitHub
The IOG team has recently unveiled a cutting-edge Cardano Technical Briefing video featuring Duncan Coutts, Technical Architect at Input Output Global. The video delves into the latest network enhancement, Dynamic P2P, and offers a comprehensive overview of the rollout process, which was preceded by extensive research, testing, and simulations. For those interested in the forefront of blockchain technology, this informative and insightful video is a must-watch. Access it at: Cardano Technical Briefing: Dynamic Peer-to-Peer by Duncan Coutts - YouTube
For more information on ‘dynamic p2p’ check out the following blogpost: Dynamic P2P is available on mainnet - IOHK Blog
CF Delegation Application Form is open for the next round (April 2023)
The Cardano Foundation is excited to announce that the application form for the next delegation round in April 2023 is now open! We want to empower stake pool operators who add value to Cardano and build tools for others to leverage.
To streamline the process, we’ve simplified the form to only request essential information, including your poolID in bech32 (pool1…) and your contributions to the Cardano ecosystem. The form will remain open until the second week of April 2023, giving operators ample time to apply. Check out the forum post for more details, or apply now at: Delegation Application Form
Women in the Cardano Ecosystem Take the Spotlight at the First Event of Cardano Foundation’s Webinar Series: Let’s talk Cardano
The first event in the Cardano Foundation’s new series of webinars, Let’s talk Cardano, took place on March 8th 2023. The webinar featured three different panels that offered insights into thriving projects led and created by women.
Panel 1 focused on businesses building on Cardano, Panel 2 discussed cNFTs, and Panel 3 highlighted women in Project Catalyst. The webinar was definitely a great success, recognizing the valuable contributions of women to the Cardano ecosystem, with the hope of inspiring and empowering more women to excel in the industry. Watch the full episode, here.
Ambassador Stories, Journal #34: David Lezu & Giannis Mitsios
This week, we’re proud to once again present two new Ambassador Stories. This time we bring you the stories of Daniel David Lezu & Giannis Mitsios. Both Daniel & Giannis have joined the Ambassador ranks as Content Creators. Their stories not only give insight into how they contribute to the further advancement of our ecosystem, but also give you a small look into their personal lives. We hope you enjoy reading their stories as much as we did interviewing them. (@ddlezu @Varavas)
Other Cardano related News
- Cardano’s UNHCR stake pool was featured on an episode of the Learn Cardano podcast on donating cryptocurrency. Flagship.FYI also tweeted a thread about the project, outlining how it works and how it will “revolutionize humanitarian aid for refugees.”
- Cardano’s Mithril stake-based signature system has been updated with improvements in the v2310.0 prerelease, enhancing syncing times, speed, and efficiency for nodes connecting to the Cardano network. Hoskinson confirmed this development on Twitter.
- Charles Hoskinson tweeted that he believes algorithmic stablecoins are “the most essential research stream” to fully achieve Satoshi Nakamoto’s vision of Bitcoin, and that banks will always let users down. He made the statement in response to Jesse Powell’s observation that USDT’s value increased following the decline of rival USDC.
Cardano Reddit Top 10 Most Engaged Topics
Below are the most engaging topics on Reddit
- Paima Studios brings Polkadot users to the Cardano ecosystem by adding Polkadot wallet support to all apps & games written with their web3 engine
- Cardano Founder Defends Crypto Firms, Emphasizes Fragility of Traditional Financial Institutions
- DeFi on Cardano is booming
- Witness the historic moment as World Mobile brings its first paying customers online!
- VacuumLabs, a company that has contributed tons to Cardano over the years, has announced they’re joining the Paima ecosystem - a web3 engine to allow developers to easily write web3 apps & games that supports Cardano wallets
- Cardano TVL Rankings
- In my opinion, it is important in the long term for Cardano smart contracts to stop using PlutusV1 and/or PlutusTx
- Rosen Bridge Testing Launch launch over mainnet :Why Cardano and Ergo Make the Perfect Pair
- Dynamic P2P is available on mainnet! Dynamic peer-to-peer (P2P) networking comes with the release of node v.1.35.6. Network participants can now test automatic node communication without a need for static configurations March 15, 2023
- Latest Cardano update to introduce peer-to-peer (p2p) support
Cardano Forum Top 10 Top Referred Topics
Topics that have received the most clicks from external sources. (last 10 Days)
- Multi-address wallets and Shen|349|
- Cardano の2023年主要アップグレードとなるCIP1694の7つの変更点|268
- Un Primer Paso Hacia la Gobernanza Descentralizada en Cadena: Nuevo Borrador CIP-1694|180
- CIP-1694 in a Nutshell|111
- Online Cardano Meetup on the Topic: Cryptocurrency Wallets|97
- Is the current model of dReps in CIP-1694 a flawed concept?|92
- Minimal Viable Governance|84
- CF Delegation Application Form is open for the next round (April 2023)|77
- Relays and Nodes|65
- Ambassador Stories, Journal #34: Daniel David Lezu & Giannis Mitsios|63
Recently held Meetups
Other meetups around the world:
- 4 February 2023|Cardano Lisbon Meetup #1 More Info
- 18 February 2023|Cardano Campus Meetup - Ghana Edition #1 More information
- 24 February 2023|Empowering the Cardano Community in Africa: A Summary of the February 24th Catalyst Africa Town Hall. More Information
- 25 February 2023|Cardano Meetup in Taiwan. More Information
- 27 February 2023|Hong Kong Cardano meetup making a comeback? More Information
- 10 March 2023|The Catalyst Africa Town Hall. More Information
- 10 March 2023|Cardano MENA Community zoom Meeting # 1. More Information
Recently held Ambassador Calls
- 15 March 2022 Open Content Creator Call
- 08 March 2022 Open Moderator Call
- 23 February 2022 Open Meetup Organizer Call
- 22 February 2022 Open Content Creator Call
- 20 February 2022 Open Translator Call
- 16 February 2023 Monthly Ambassador Call
Bi-weekly CIP editor Meeting on Discord
Are you interested in attending CIP editor meetings? Join the Discord channel to learn more about this interesting community where ideas and recommended changes are all discussed.
What happened in CIPs last week? (by @RyanW)
CIP-??? | Supercharged Native Scripts [New Proposal]:
- This CIP proposes replacing the current native scripts used for minting Cardano Native Tokens with simple smart contracts.
CPS-??? | Voltaire era Governance [New Problem]:
- This CPS tried to frame a set of motivations, goals, constraints, and open questions for the very broad topic of Cardano governance.
- This is to accompany CIP-1694 to allow for discussion of the problem of governance rather than the technical solution.
CIP Editors Meeting #62 – my notes:
CIP-0084? | Ledger evolution (meta):
- Looking good to merge – due to the nature of the proposal it does not need much engagement past the Ledger team.
- With post meeting clarification on RSS CIPs application to the Ledger category, this is in Last Check for the next meeting.
CIP-0030 | Upgrade to latest format & propose version / extension scheme:
- With small amendments to remove positional arguments, this can be merged as it has a lot of positive discussion.
CIP-0090? | Extendable dApp-Wallet Web Bridge:
- Author (me) present to discuss.
- Overall needs more discussion from wallet providers.
- Number can be assigned.
CIP-0091? | Don’t force Built-In functions:
- Lots of good discussion with author engaging very well.
- Assign a number and look to merge in the next meeting.
CIP-0092? | First-class errors in Plutus:
- Author present and provided great explanation.
- Benchmarks/analysis on how much more efficient this is would be nice.
CIP-0089? | Beacon Tokens & Distributed Dapps:
- Seems to be some off-github discussions around this proposal - would be good to link them.
- Can assign a number.
- Somewhat informal, might benefit from a CPS.
CIP-0088?: Native Asset Policy Registration/Information Certificates:
- Can assign a number.
- Author has had some good engagement.
- More comments and discussion around related CIPs and CPSs should be added.
CPS-??? | Reading metadata in Plutus contracts:
- More detail is needed.
- This is more of a feature request than a problem statement. Furthermore this is a feature which had purposely not included by the Plutus team.
- So this is rejected for now.
CIP-0030 | Add chain id to differentiate between testnets:
- Has good support.
- This should fit as an extension to CIP-30 as discussed in #466, although it is unclear if the author wants to pursue.
CIP-0077? | Verified Stake Pool Identity:
- Could benefit from more discussion by SPOs.
- Good and timely proposal.
- CIP Editors Meeting #63:
- March 28th 5pm UTC.
- Held on Discord - here.
- Agenda TBC.
Weekly CIP updates can be followed and reviewed here:
Who should get ADA rewards for voting in the Voltaire era?
Delegation Representatives (DReps) will decide on important issues concerning the future of Cardano. Should they be rewarded for this work? And what about the ADA holders who delegated their decision-making authority to the DReps, should they be rewarded as well? Let’s think about this and look for answers.
- CIP-1694 has elements of direct and representative democracy.
- We should honor the principle of 1 ADA = 1 vote, but this does not necessarily apply to the size of the reward.
- All DReps should be rewarded fairly, even those with a smaller stake, but at the same time, we need to consider the size of the stake.
- If all ADA holders are not rewarded, but only DReps, the system relies on ADA holders not being greedy and behaving responsibly.
- Most people will behave rationally when voting because they are making decisions about their own wealth.
How democracy works
We can take inspiration from voting in democratic systems. Direct democracy and representative democracy are two forms of democratic systems that differ in how citizens participate in decision-making.
Direct democracy is a system in which citizens directly participate in making decisions. In this system, citizens have the power to propose, vote on, and make decisions on public policy issues. Direct democracy is usually used in small communities or in small groups where it is easy for all members to participate and share their views.
Representative democracy, on the other hand, is a system in which citizens elect representatives who make decisions on their behalf. In this system, citizens vote for representatives who will represent their interests and make decisions on public policy issues. The representatives are accountable to the citizens and can be voted out of office if they fail to represent their interests.
The first question is? Do we want a direct democracy for Cardano or a representative one? Cardano is a global project and the number of ADA holders will tend to grow. Each new protocol change will impact all users. Dreps, as the name implies, are people that can be voted by ADA holders as their representatives.
On the other hand, in a representative democracy, people vote on a given number of politicians. Some succeed and some fail. CIP-1694 proposes that any ADA holder can register as a DRep. This principle is closer to direct democracy.
Who is paid in these systems?
In a direct democracy system, voters and individuals who propose new rules typically do not receive payment for their participation in the decision-making process. This is because direct democracy is based on the principle of citizen participation and engagement, where individuals are motivated by a sense of civic duty to contribute to the democratic process. In some cases, there may be financial incentives or compensation provided to individuals who are required to take time off work or face other financial burdens in order to participate in direct democracy processes.
In a representative democracy, elected representatives are typically paid for their work. This is because the role of an elected representative involves a significant amount of time, effort, and responsibility. It is important to note that the salaries and benefits of elected representatives are paid for by taxpayers.
CIP-1694 contains elements of both types of democracy. ADA holders have the right to elect DReps, but at the same time, they can register themselves as a DRep and potentially qualify for a reward. There is no limit to the number of DReps, unlike how it is usual in a representative democracy. The advantage is that there is no defined hierarchical structure with the number of representatives and the CIP is free in what can potentially emerge. The emphasis is on keeping the power in the hands of ADA holders. They can decide to vote for themselves at any time.
Who to give rewards to?
From what we have written above, there should be no reward for electing a DRep. If the ADA holders delegate decision-making power to the DRep, they are essentially expressing confidence in the DRep’s abilities and are unwilling to take the time needed to make the best decision themselves.
Only DReps should be rewarded for their work. The question is whether in proportion to the size of the delegation or all equally, as the time and effort of their work may be similar.
The problem is that the right to vote is not and cannot be tied to a person but to an ADA coin (1 ADA = 1 vote). One person can split their stake into multiple accounts and pretend it is multiple people.
If the mechanism were to work with specific people and give it some weight in voting, they would have to be willing to be publicly visible (not necessarily provide KYC, but have DID). Not everyone will be interested in being publicly known and the desire to remain anonymous should not be a limitation. It seems that in the first phase of on-chain governance, we will have to base voting solely on ADA and the ability to delegate coins to DReps.
The community should care about the rich not getting richer, so from our perspective, the reward package should be split equally among all DReps. Note that we are talking about the size of the reward, not the size of the voting power. The voting power should respect the stake size.
There’s a catch. Anyone who wanted to take a bite out of the bounty could register as a DRep. Theoretically, they wouldn’t have to put any effort into the problem and vote randomly. Unfortunately, this cannot theoretically be prevented if only ADA coins are used for voting. If greedy people registered as DReps just to get a reward for free, they would reduce the rewards for those who spent more time and effort studying the issues.
Imagine if a reward of 1,00,000 ADA was distributed among all DReps and each registrant was entitled to a portion of the reward despite holding say only 1 ADA. Does such a person have the right to be a DRep, make decisions, and get a reward theoretically higher than his stake? Should there be some requirement for the number of ADA coins in order to register as a DRep? A DRep with 1 ADA has very little weight in the voting, so the reward should be appropriate, i.e. low.
This brings us back and perhaps the stake size of individual DReps should be taken….
For the full article, visit source: https://cexplorer.io/article/who-should-get-ada-reward-for-voting-in-the-voltaire-era
Spotlight for Community-built Tools
The Developer Portal was created to foster a home for developers who are dedicated to building tools and services on Cardano. The platform allows developers to not only collaborate on projects but also to showcase their works.
The Developer Portal aspires to become a credible source where users can search for tools to fit their needs.
Community projects already running on mainnet are encouraged to add their projects to the Developer Portal.
- Ogmios Java Client: A Java API library for interacting with Ogmios.
- @dotare/cardano-delegation: A delegation button that uses cip30 to improve the quality of life for developers and delegators.
- DCOne Crypto Webhook API: API for developers to receive information on changing stake balance.
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Many thanks, and greetings from the Community Team!