Cardano Meetup Online #3 - AMA on Cardano Constitution (Part 2) - 18/8/2024 - Recap

[Hakochan]

As announced on Meetup and the Cardano Forum Post, Cardano Meetup Online #3 took place on August 18, 2024, from 8 PM to 10 PM, with 18 participants. This discussion followed the lively conversation at Cardano Meetup Online #2 held on August 4 (see the recap here), aimed at clarifying questions and gathering community feedback on the Cardano Constitution. It also served as preparation for the Cardano Constitution Workshop in Ho Chi Minh City on August 25 (registration link here).

Speakers and Guests:

• Mr. Duc Tiger - from Tiger View Channel, specializing in providing updates and analysis on Cardano, while also supporting the Catalyst Vietnam community.
• Mr. Duc Chau - Founder of Tre Viet Bamboo, with significant contributions to the sustainable development of the Cardano ecosystem.
• Mr. Buck Nguyen - from Cardano Asia TikTok, known for creating short and easy-to-understand videos about Cardano, connecting the Cardano community in Asia.

Agenda:

• Protocol parameter groups in the Constitution
• The importance of parameters in the Voltaire era and decentralized governance
• Preparation for the Constitutional Workshop in Ho Chi Minh City
• Q&A Session
• Call for participation in the Constitutional Workshop in Ho Chi Minh City
  
  
  
  
  

Main Content Discussed:

• Protocol parameter groups in the Cardano Constitution:
  • Network parameters: Ensure sustainability, efficiency, and security of the network, including parameters such as maximum block size, transaction size, block headers, chainable assets, and parameters related to memory and CPU.
  • Economic parameters: Define transaction fees, UTXO costs, and other minimum fees to ensure the system operates fairly and efficiently. Parameters include minimum fixed rewards for stake pools, minimum UTXO costs, and execution prices for Plutus smart contracts.
  • Technical parameters: Focus on network security and resilience against attacks like 51% or DDoS. Adjust the number of stake pools (P), the pledge amount of pools, the number of epochs for dissolution notice, and the cost model for executing Plutus scripts.
  • Governance parameters: Define terms, voting thresholds, the number of Constitutional Committee members, and fees for submitting governance proposals to ensure transparency and effective governance.
    
    
    
    
    

Details of Specific Parameters:

• Fixed rewards: The lower limit is 500 ADA. Minimum fixed rewards can be set from 170 ADA or higher.
• Minimum costs per byte of UTXO and the execution price of smart contracts: Range from 500 to 2,000 lovelaces.
• Parameters for pool pledges and dissolution: Adjust the pledged amount and the number of epochs for the dissolution notice.
• Cost model for executing Plutus scripts and collateral ratio for scripts: Ensure transparency and cost efficiency.
• Validity period and deposit required for submitting governance proposals: The period ranges from 1 to 15 epochs, and the deposit ranges from 1 to 10 million ADA.
• Voting thresholds for governance actions: Range from 51% to 75%.
• Maximum term for members of the Temporary Constitutional Committee: From 18 to 293 epochs (3 months to 4 years), with a recommendation of 3 years.
• Minimum size of the Constitutional Committee: Currently, 7 seats, each of which can be held by an individual or organization.
  
  

Q&A Session:

1. Question: Can you explain the upper and lower bounds of the fixed reward values for Pools?

   • Answer: The minimum fixed reward for Pools is 500 ADA, with an upper bound of 500 ADA. Previously, this value was 340 ADA, but it can now be set from 0 to 340 ADA. Currently, there is only a lower bound of 170 ADA.

2. Question: Can stake pools set fixed rewards from 170 ADA or higher without an upper bound?

   • Answer: Yes, but we will check this information again to ensure accuracy.

3. Question: Why is there a lower bound but no upper bound for the cost model for executing Plutus scripts?

   • Answer: To ensure fairness and efficiency, but no upper bound is set to allow flexibility under different market conditions.

4. Question: What is the minimum voting threshold for a governance action to pass?

   • Answer: The voting threshold ranges from 51% to 75%. At least 51% of “Yes” votes are required for an action to pass.

5. Question: Should the Constitution include a clear process for electing members of the Constitutional Committee?

   • Answer: Some believe a clear process is necessary to ensure transparency. However, others suggest this process should be in a separate document.

6. Question: If there are no members on the Constitutional Committee, how will the constitutional validity and approval process be conducted?

   • Answer: Even without members, governance actions can still be implemented. The size of the Committee can be expanded or changed in the future.

7. Question: What is the role of the “Open Source Office” in managing code related to the Constitution?

   • Answer: The Open Source Office (OSO) under Intersect is responsible for open-source code, developing strategies, maintaining software, ensuring license compliance, and encouraging community contributions.

8. Question: Why is there a minimum threshold of three members for the Constitutional Committee?

   • Answer: This threshold ensures balance and counterbalance in the decision-making process.

9. Question: How to address the participation of ADA-holding organizations, like exchanges, that are not real owners?

   • Answer: It is challenging to control due to the anonymity of wallet addresses. A stricter management mechanism, such as requiring wallet address disclosure or applying KYC elements, is needed.

10. Question: Are there any regulations on the number of people participating in the vote?

    • Answer: There is no maximum number specified, but at least 10 participants are required.

11. Question: What does travel cost include?

    • Answer: It includes airfare, accommodation, and living expenses for 3 days in Argentina, fully funded by Intersect.

12. Question: If there are further questions or interest in participating, what should I do?

    • Answer: You can contact via the Cardano Meetup Vietnam Telegram group.

13. Question: Will the workshop use Vietnamese as the primary language?

    • Answer: The workshop will be bilingual, in both Vietnamese and English.

Conclusion:
The AMA provided valuable insights, helping the community better understand the Cardano Constitution and prepare for the workshop in Ho Chi Minh City on August 25. All members are encouraged to participate and contribute to building a complete Constitution for Cardano.

Thank you to everyone for participating in Cardano Meetup Online #3 and engaging in vibrant discussions about the Cardano Constitution.

On behalf of the Organizing Committee,
Ha Nguyen
Cardano Ambassador
Cardano Vietnam Community

Video Record

Cardano Meetup Online #3 - AMA về Hiến Pháp Cardnao- Lần 2

Document

Hội thảo Hiến pháp AMA 2- Duc Tiger