Contingent Staking is a beneficial extension for Cardano

Contingent Staking (CS) is a proposal to extend the delegation process. SPOs would be able to request information from potential delegators and decide whether to accept or reject the delegation based on provided data. This functionality is misinterpreted as introducing a KYC process at the first layer. This is a misconception as it is only an extension of the existing process and SPOs will not be forced to use it. Contingent Staking can be a win for Cardano as it will extend its functionality with a capability that can bring greater adoption, liquidity, and usage. All of Cardano’s key characteristics such as decentralization, censorship resistance, openness, and accessibility to everyone on the planet without third-party consent will be preserved.


  • ADA holders will probably not delegate to pools requiring KYC. They have to arrange delegations differently.
  • Fiat money and the internet serve both good and bad people. Cardano should be the same.
  • More versatility will bring more ways to use Cardano.
  • Cardano is not a tool of one group to fight fiat currencies or states.
  • Contingent Staking does not disrupt the key characteristics of Cardano.
  • If there is a demand to delegate coins to a pool that does not require KYC, such pools will arise.
  • ADA holders will decide on the implementation of Contingent Staking through a vote.

This article was prepared by Cardanians with support from Cexplorer.

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How do you think CS will work without KYC?
At the very least, US based SPOs will need to confirm the location of delegators. Also, non-US SPOs will need to confirm that their delegators don’t come from the US to maintain compliance.

Without a completely verifiable identity solution (KYC) this will be impossible to implement. You can talk about using DIDs all you like, but the backbone of a DID for CS requires full KYC.

This will totally change the protocol from permissionless to permissioned. It is completely unnecessary at the L1 level since there are already SaaS (Staking as a Service) providers in the ecosystem. Any for-profit enterprise can just use the current multi-pool SaaSs available.

Of course it can work without KYC. Have a listen to Charles’ video where he outlined some use cases:

There is no basis for such a claim.

Currently there is no evidence that the US Govt or US regulators are going to come after Cardano staking. Eg: By seeking to ban Cardano staking without KYC.

This is what I wrote in another thread on this forum KYC, SEC, Contingent Staking, Twitter Drama and YOU. Spank-fully explained! ;) - #14 by Aliduth

I think regulators can choose to come after Cardano staking, and whether or not we provide tools to allow contingent staking is irrelevant. Cardano staking is literally making a free choice to point a key. There is no contract with the stake pool and there is no transfer of funds or taking of custody.

If regulators choose to outlaw Cardano staking then I think we have much bigger problems because at that point they will have chosen to outlaw freedom of choice, freedom of association, and freedom to value things differently. I would rather die on that hill because otherwise we may as well already be connected up to the matrix.