Cardano Foundation Updates Delegation Strategy

[adatainment]

I am sorry and would like to formally apologize for assuming that this was written by ChatGPT and can give you my personal opinion on the points mentioned:

@GrahamsNumberPlus1

Small Stakepools:

Small stakepools have been the backbone of Cardano, contributing tirelessly to the network’s stability at a personal cost, often without any income in recent times. These pools exemplify dedication and support for Cardano’s principles of decentralization. Unfortunately, the updated delegation strategy doesn’t seem to recognize their immense value.

It unclear what “small” in this comment means but from my view pools that constantly produce blocks and that are able to take the load of P2P are the backbone of the Cardano network. The current strategy and the one before it does not touch these pools. The Foundation never supported stake pools just because they are stake pools. We have always looked for outstanding contributions. What we do see is that there is an overlap between outstanding contributions and the stake pools in terms of technology, relay configuration and best practices.

@GrahamsNumberPlus1

Centralization Concerns

The decision to reduce the number of pools that receive support while extending the delegation duration and package size appears to concentrate support around a select few. The aim to improve quality inadvertently risks hindering the smaller pools’ growth, which seems contrary to the spirit of decentralization and inclusivity that Cardano stands for.

We have very rarely observed that pools have grown through the 3 months delegation. Sometimes it was even the opposite. These days, stake is moving around very slowly. If something helps to grow pools then this is a bigger delegation for a longer time.

The Delegation Strategy never had the intention to create an “artificial” decentralization by delegating to small pools. Please look into Cardano Foundation's New Delegation Methodology: Supporting the Architects of the Future for details.

@GrahamsNumberPlus1

The Removal of the Single Pool Requirement

Cardano has always been seen as a blockchain platform that discourages centralization. Thus, the removal of the single pool requirement is surprising. While it may aim to create more inclusivity, it has sparked concerns about the potential for centralization, which is a move away from Cardano’s foundational values

Cardano’s fundamental values have nothing to do with Cardano Foundation’s Delegation Strategy. (but I assume you are mixing here up Cardano and Cardano Foundation?) If the Cardano Foundation would delegate in the sense of Cardano’s fundamental concepts (pure game theoretical incentives) then it would have to do so in a way that maximizes its profit. The Foundation wants to avoid this with its strategy and has always tried to do a very good balancing act, even against the core principles on which Cardano is built.

We removed the single pool requirement to not limit ourselves in the selection of high contributions. The delegation list that we will soon put out will speak for itself.

@GrahamsNumberPlus1

Lack of Transparency and Community Involvement

The recent shift where the Cardano Foundation appears to be handpicking pools for delegation without any clear parameters raises questions about the transparency of the process and does not appear to care about community involvement in the selection process. The community has been an essential part of Cardano’s journey, and we hope that spirit continues to thrive.

The old process handpicked a shortlist, and then did a random draw on that shortlist. Because the shortlist needs to be a lot bigger than the actual random draw this has an interesting effect: It is like you need to pick the best 10 dancers in the room but you are not allowed to pick them directly. You need to pick the 20 best dancers in the room and then do a random draw. This diminishes the quality of your list.