# CIP-1694 in a Nutshell

**URL:** <https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617>\
**Category:** Governance\
**Tags:** governance, cip, cip-1694, cip-1694-dreps\
**Created:** [16 March 2023 19:03 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617 "2023-03-16T19:03:21Z")\
**Posts on this page:** 18\
**Page:** 1

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**Author:** ![Hornan](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/hornan/32/83064_2.png) [@Hornan](https://forum.cardano.org/u/Hornan)\
**Post date:** [16 March 2023 19:03 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/1 "2023-03-16T19:03:21Z")

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I made a detailed diagram ‘‘CIP-1694 in a Nutshell’’ updated from 2023-03-15 commit. I assembled it always with the aim of making it as simple as possible for everyone to understand. The document is sharable by anyone and I encourage you to use it in your tutorials/website/blog/etc and to minimize the misinformation surrounding this CIP. I did not chill my pool in this document in the hope that it can be used by everyone without restriction. I hope that you will like it. I took a few days off to draw it.  
[CIP-1694 in a Nutshell (2023-03-15 Update).pdf](https://forum.cardano.org/uploads/short-url/kyeVNBD5MheYZS9BMXyIe1VdWmw.pdf) (489.8 KB)

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**Author:** ![COSDpool](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/cosdpool/32/21482_2.png) [@COSDpool](https://forum.cardano.org/u/COSDpool)\
**Post date:** [16 March 2023 19:45 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/2 "2023-03-16T19:45:29Z")

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thanks @Hornan - I can see this is an updated one of the infographic that was so well received on Twitter & that CH himself asked if you would update for the recent proposal changes. I think it’s a great service to the community and to the progression of this proposal (and the governance issue in general) that you are doing this. 😇

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**Author:** ![adatainment](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/adatainment/32/81481_2.png) [@adatainment](https://forum.cardano.org/u/adatainment)\
**Post date:** [17 March 2023 08:09 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/3 "2023-03-17T08:09:39Z")

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Thank you for doing this

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**Author:** ![Hornan](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/hornan/32/83064_2.png) [@Hornan](https://forum.cardano.org/u/Hornan)\
**Post date:** [17 March 2023 12:10 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/4 "2023-03-17T12:10:16Z")

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Yes exactly.This one is up to date and corresponds to the last modification of Jared’s last commit dated 2023-03-15. I had several good comments and I will make the necessary changes and repost on the next commit. That being said, these updates will always be available in PDF format at:

> **[Able-pool](https://able-pool.io/voltaire)**
>
> Contributing to Cardano's network security with a 0% margin fee and 340 ADA minimum fixed fee.

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**Author:** ![dennyb2010](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/dennyb2010/32/10588_2.png) [@dennyb2010](https://forum.cardano.org/u/dennyb2010)\
**Post date:** [17 March 2023 15:44 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/5 "2023-03-17T15:44:13Z")

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Thank you for putting this together 👍

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**Author:** ![Hornan](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/hornan/32/83064_2.png) [@Hornan](https://forum.cardano.org/u/Hornan)\
**Post date:** [17 March 2023 15:55 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/6 "2023-03-17T15:55:14Z")

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(CIP-1694 in a Nutshell) update.  
Thanks to the suggestions of @Quantumplation 💪😬

- added Constitutional term limit explanation
- added The Cardano Constitution initial  
definition/explanation
- replaced (URL to the metadata metadata hash) by  
‘anchor’ and added its definition

[CIP-1694 in a Nutshell (2023-03-17 Update).pdf](https://forum.cardano.org/uploads/short-url/7mxsJ0BzGprjn2pDZrPCMWSQelW.pdf) (505.1 KB)

The updated PDF document is available at: [Voltaire | Able-pool](https://able-pool.io/voltaire)

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**Author:** ![beezerlm](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/beezerlm/32/60820_2.png) [@beezerlm](https://forum.cardano.org/u/beezerlm)\
**Post date:** [18 March 2023 11:25 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/7 "2023-03-18T11:25:46Z")

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Thanks for putting this together. Sometimes life gets busy and it’s been hard to make time to follow this CIP. These things help.

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**Author:** ![vora101](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/vora101/32/63303_2.png) [@vora101](https://forum.cardano.org/u/vora101)\
**Post date:** [19 March 2023 05:43 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/8 "2023-03-19T05:43:09Z")

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Good one, thanks for putting this together.

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**Author:** ![cyberruss](https://avatars.discourse-cdn.com/v4/letter/c/4bbf92/32.png) [@cyberruss](https://forum.cardano.org/u/cyberruss)\
**Post date:** [19 March 2023 21:01 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/9 "2023-03-19T21:01:45Z")

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Great job! Very clear to parse, make a complex topic much more accessible.

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**Author:** ![Hornan](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/hornan/32/83064_2.png) [@Hornan](https://forum.cardano.org/u/Hornan)\
**Post date:** [20 March 2023 12:15 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/10 "2023-03-20T12:15:19Z")

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Thank you for your good comments. It is heartwarming. I update the document (diagram) very regularly. So if you want to be sure to have the latest version, go through the URL link. I updated it again as of today and it is available at:

> **[Able-pool](https://able-pool.io/voltaire)**
>
> Contributing to Cardano's network security only with Bare-Metal Server Nodes.
> Why? Because we're ABLE!

Today’s Update include :

- Added additional information on term limit rules about motion of no-confidence.
- Added clarification on governance action info.
- Corrections to descriptive text related to Protocol Parameter Groups
- Simplified the ‘Votes’ section and the ‘Governance State examples’ section

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**Author:** ![mavratsas](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/mavratsas/32/55309_2.png) [@mavratsas](https://forum.cardano.org/u/mavratsas)\
**Post date:** [27 March 2023 14:16 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/11 "2023-03-27T14:16:10Z")

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Hi Hornan, Thank for the diagram. Do you know how the

1. Constitutional committee and,
2. The group of delegate representatives (henceforth called **DReps** )  
will be established?

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**Author:** ![Hornan](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/hornan/32/83064_2.png) [@Hornan](https://forum.cardano.org/u/Hornan)\
**Post date:** [27 March 2023 17:00 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/12 "2023-03-27T17:00:04Z")

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The initial committee is not yet defined

The constitutional committee can be replaced in one of two ways:

- When in a **normal** state (i.e. a state of **confidence** ), the committee can be replaced via a  
specific governance action (“New constitional committee”, described below) that requires the approval of both the **current constitutional committee** and the **DReps**.

- When in a state of **no-confidence** , the committee can also be replaced via the same governance action (action 2 below),  
but this instead requires the approval of both the **SPOs** and the **DReps**.

About Dreps:  
1- Any ada holders can become a Drep and represent himself/herself and get delegated voting power from other ada holders using a “Drep registration certificate” onchain.  
2- delegaters can then delegate to them using a “Drep delegation certificates” which contain their stake credential and the Drep ID. ( they can also delegate to predefined Drep (abstain) or (no-confidence) which is explained in the diagram.

During the “Bootstrap period” (the period when the first few Dreps will establish their voting power), most of the decision making will be done by the committee and the SPOs. (Bootstrap time period) to be determined and information about it might have already changed. But i’ll follow it closely and try to keep the diagram simple and updated.  
[CIP-1694 in a Nutshell (2023-03-23 Update).pdf](https://forum.cardano.org/uploads/short-url/qjPJ60yRPYKridmIwrJq63nnzmW.pdf) (516.7 KB)

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**Author:** ![mavratsas](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/mavratsas/32/55309_2.png) [@mavratsas](https://forum.cardano.org/u/mavratsas)\
**Post date:** [28 March 2023 07:37 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/13 "2023-03-28T07:37:38Z")

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Thanks for the detailed answer Hornan. Really appreciate your effort.

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**Author:** ![Hornan](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/hornan/32/83064_2.png) [@Hornan](https://forum.cardano.org/u/Hornan)\
**Post date:** [2 April 2023 06:17 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/14 "2023-04-02T06:17:29Z")

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It’s a pleasure. I don’t always respond very quickly. But I always answer.

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**Author:** ![Hornan](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/hornan/32/83064_2.png) [@Hornan](https://forum.cardano.org/u/Hornan)\
**Post date:** [3 April 2023 05:37 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/15 "2023-04-03T05:37:35Z")

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Hi everyone. I’ll leave another update of CIP-1694 in a Nutshell from 2023-03-28 commit (Fractional CC, inactive DReps and voting with deposits)

[CIP-1694 in a Nutshell (2023-03-28 Update).pdf](https://forum.cardano.org/uploads/short-url/dD8w48KimjyZrtBAv9dM5JT39Nv.pdf) (529.3 KB)

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**Author:** ![uiseslacumbre](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/uiseslacumbre/32/49376_2.png) [@uiseslacumbre](https://forum.cardano.org/u/uiseslacumbre)\
**Post date:** [30 April 2023 23:48 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/16 "2023-04-30T23:48:38Z")

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gracias! Muy bueno!

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**Author:** ![f-squirrel](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/f-squirrel/32/46777_2.png) [@f-squirrel](https://forum.cardano.org/u/f-squirrel)\
**Post date:** [3 November 2024 14:18 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/17 "2024-11-03T14:18:29Z")

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Thank you for an amazing explanation!  
I would like to confirm that in order to withdraw the staking reward, it is enough to define yourself as an abstain voter with a predefined DRep. Is it correct?  
Is there a good example of code that shows how to create such a transaction.

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<div class="post-metadata">

**Author:** ![Hornan](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/hornan/32/83064_2.png) [@Hornan](https://forum.cardano.org/u/Hornan)\
**Post date:** [5 November 2024 04:09 UTC](https://forum.cardano.org/t/cip-1694-in-a-nutshell/115617/18 "2024-11-05T04:09:24Z")

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You can do it directly from your wallet if you use Eternl or I suggest you delegate through [gov.tools](https://gov.tools/) website.😃

If you use the terminal to build your transaction with the CLI, the commands are explained in the Governance Tree infographic here: [Document | Able-pool](https://able-pool.io/document)

Let me break it down for you:

Step 1:  
Create your delegation certificate (if you want to delegate to auto-abstain, replace the `--drep-key-hash` line by `--always-abstain `)

 ![Screenshot_20241104_225530_Samsung Internet](https://us1.discourse-cdn.com/flex023/uploads/cardano/original/3X/1/d/1df46071f93eccc639a3a510a0511ec719c20d24.jpeg)

Step 2  
Build your Transaction. (For the `--tx-in` simply spend a UTXO from your own payment address)

 ![Screenshot_20241104_225601_Samsung Internet](https://us1.discourse-cdn.com/flex023/uploads/cardano/original/3X/6/d/6d2fa8aeb897c77077a1e4d719cd001389a310ae.jpeg)

Step 3  
Sign your transaction with both your payment and stake private keys: (from your cold environment, of course 😉)

 ![Screenshot_20241104_225619_Samsung Internet](https://us1.discourse-cdn.com/flex023/uploads/cardano/original/3X/0/8/08ac5ac8e1167aa7d10d32b6980dc48368ff7a23.jpeg)

Step 4  
Back to your hot environment, submit your transaction on-chain:

 ![Screenshot_20241104_225633_Samsung Internet](https://us1.discourse-cdn.com/flex023/uploads/cardano/original/3X/0/b/0bddd203e303d89ec3db27f4c7ff9548b70a1142.jpeg)  
And thats it! 🥰

If you have any more questions, feel free to ask. 😃👍
