Cardano Holders Need To Know This
Cardano inventor Charles Hoskinson has clarified ADA holders' staking reward withdrawal options after the Chang hard fork. This clarification addresses ADA holders' rising concerns regarding governance and incentive system modifications.
Hoskinson said, “To withdraw staking rewards from the network, a user must vote no confidence, abstain, or delegate to a DRep. Lace wallets simplify the UX by immediately abstaining if a user picks delegation exclusively.
Community inquiry confirmed that abstaining needs deliberate decision, not passive inactivity. When a user inquired whether “abstain” meant picking the abstain delegation option or doing nothing, Hoskinson replied, “That is correct. I explained my tweet since it's an action.” This shows that ADA holders must make conscious actions to alter their staking benefits under the new governance paradigm.
Mismanagement or exploitation of the governance structure was another community issue. Jacob, another X user, said, “I choose to abstain” due to his skepticism in the system, especially the new DRep responsibilities. I hate seeing tiny girl and boy influencer DReps drain the treasury in this experiment.”
“That’s why that option is there,” Hoskinson comforted him, underlining the system’s flexibility. You may even vote without trusting the system.” His answer emphasizes the built-in protections that enable ADA holders to protest or refuse to delegate voting authority if they distrust the procedure or results.
The Chang hard fork makes important improvements as detailed in Cardano Improvement Proposal (CIP-1694), which defines governance responsibilities including General ADA holders, DReps, SPOs, and the Constitutional Committee.
The Cardano network relies on the 4 Governance Roles of General ADA holders. They may vote directly or via Delegated Representatives .
As part of Cardano's governance revamp in the Age of Voltaire phase, Delegated Representatives (DReps) represent other ADA holders in governance decisions.
