We at the Cardano Foundation would like to announce a change to our delegation methodology. The requirements of the protocol are constantly evolving as we deploy our technology stack. We will continuously update our delegation methodology to support our community.
For earlier delegations, our delegation strategy focused on supporting the decentralization and deployment of the Cardano protocol. This is why we delegated to smaller stake pools. It is also why we supported those who run single pools over those who run multiple pools. Our focus has now shifted to building the ecosystem.
With the successful implementation of Alonzo and smart contract capabilities unlocked, we feel it is now more important than ever to attract and support ecosystem builders and contributors. From our next round, we will delegate to stake pools that make a considerable contribution to the community. Stake pool contribution will be evaluated based on what they build or how they support the community and/or the greater ecosystem.
Going forward, we want to encourage people to build something that the community needs, is open-source, and helps the ecosystem thrive.
We want to support the people who create value on Cardano; who build the tools that others can use to build on Cardano; that contribute to projects like the Developer Portal; who create Cardano Improvement Proposals (CIP); and participate in the discussions to define new standards.
We want to encourage people that are active in the Cardano Stack Exchange (CSE) and the Cardano Forum.
We want to encourage people to build what that community needs, create open-source solutions, and help the ecosystem thrive.
We want to support people that help others!
And so, for our next round, in three months time, we will follow the below process:
1. Application Form - As a first step in our transition towards a contribution-driven approach, we have created a new Delegation Application Form that contains quantitative criteria. This form will allow you to highlight strong contributions and engagement.
2. Data Collection - We will collect the data you input into the form. With each cycle, the data in the form will be collected up to a certain date, this will be approximately near the end of the 3-month cycle.
3. Scoring - The stake pools that have applied will get a pre-run score which is based on an automatic quantitative evaluation.
4. Assessment - We will examine the score and run verification checks on the data submitted to ensure all data is accurate. Then, we will rate the individual entries, a qualitative evaluation.
5. Shortlist - Once we have rated the applicants, we will publish a shortlist of stake pools eligible for delegation. This makes the whole process even more transparent.
6. Delegation - From the shortlist, we will then draw a randomized list of 45 stake pools for delegation and publish the result.
The new strategy will no longer enforce a certain pledge or active stake. However, we will make sure that we do not oversaturate pools with our delegation. Furthermore, delegations are allowed multiple times in a row and even 0% pools will be allowed. We will continue to delegate only to single pools, not to pool clusters. We rely on the community tools pool_clusters.json and adapools.org/groups to determine pool clusters.
Apply now, as a builder and/or contributor, you could be considered in the next cycle.
Keep watch on pool.pm for live delegation updates.
What was the strategy for this latest delegation then?
As we are in flux between the past and future methodology we have a slight hybrid for this round. As such, the current delegation is a combination of our:
- New Delegation Strategy - As a first step, we made a list of pools and noted all (or at least the biggest) contributions. Then we filtered out multi pools and checked suitable stake. From here, we removed the stake pools that did not meet our criteria. On this occasion we filtered out manually but going forward our application form will help out here.
- Old Delegation Strategy - the leftovers from the previous round. For more info see here. We also filled up the rest with random pools.
- Cardano Foundation’s delegation strategy is separate from IOHK’s delegation approach. The IOHK and Cardano Foundation approach are not aligned.
- If you are interested in receiving notifications about new delegation rounds and other related information, please provide us with your ticker and email address: https://cardanocommunity.typeform.com/cf-delegation