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Charles Hoskinson, the founder of Cardano, revealed a framework for blockchain governance in his latest broadcast, presenting what he calls a “Bill of Rights” for the Cardano ecosystem. This initiative, focused on 11 core blockchain tenants, aims to establish a constitutional foundation that will guide the development and governance of Cardano and potentially influence broader blockchain technologies. Broadcasting live from Colorado on October 13, 2024, Hoskinson emphasized the collaborative efforts behind this initiative. “More than 50 workshops have already been held,” he stated. The process has had the participation of 1,400 people and the election of 63 delegates. At the center of Hoskinson’s announcement is a blog post titled “The 11 Blockchain Tenants Toward a Blockchain Bill of Rights.” He clarified that these tenants are not exclusive to Cardano, but are intended to be a universal framework applicable to various blockchain systems. “These tenants are intended to capture the natural durability of these systems and the rights of their users,” Hoskinson explained, drawing parallels to human rights enshrined in constitutional law.
The 11 tenants of Cardano Blockchain
Hoskinson provided an in-depth exploration of each of the 11 tenants, clarifying their importance and practical implications for Cardano: Transaction censorship resistance: “Transactions cannot be slowed down or censored and will be fulfilled in a timely manner for their intended purpose,” Hoskinson stated. He compared this principle to freedom of expression and emphasized the importance of maintaining user autonomy within the system. “Transactions express the ways in which users wish to interact with the system, so they must be free and able to do so in a manner proportional to their intention; this precludes censorship but also demands convenience and processing.” Predictable transaction costs: Hoskinson stated that “the cost of a transaction must be predictable and cannot be unreasonable,” which is essential for user planning and system sustainability. He recognized the challenges of balancing resource allocation with user intent, especially in high-demand scenarios. Mechanisms such as tiered pricing and intent-based ledgers are being explored to address these issues. Fair recognition and compensation: Addressing the equitable treatment of taxpayers, Hoskinson noted that “each user’s input and contributions to the system will be fairly recognized, recorded, processed and evaluated.” This tenant seeks to ensure that both maintenance and development efforts are rewarded appropriately, avoiding incentive failures within the ecosystem. It also highlighted the need to fairly compensate various roles, from interest group operators to governance participants. Data portability and value: Reflecting similar principles to the European Union’s General Data Protection Regulation (GDPR), Hoskinson emphasized the importance of user consent in data handling. “The value and data that users contribute or create will not be blocked or processed without their consent,” he stated. Advocates user control over personal information and assets. Resource efficiency: “No resources will be spent unnecessarily,” Hoskinson explained, highlighting the need to minimize resource utilization through efficient protocol design. This tenant aims to prevent systemic inflation and ensure the long-term viability of the blockchain. Examples include protocol optimizations that reduce transaction sizes without compromising security. Secure preservation of value and information: Hoskinson discussed the dual aspects of this tenant: preserving the integrity of information against threats such as quantum attacks and ensuring stability of value through mechanisms such as stablecoins. “The system will securely preserve the value and information stored in it,” he said, emphasizing both data integrity and asset stability as critical components. Minimizing unnecessary resource expenditure: This tenant focuses on resource optimization, ensuring that Cardano operates efficiently without wasting resources. Hoskinson highlighted the transition from Plutus V1 to V2 as an example, where transaction sizes were significantly reduced, improving overall system efficiency. Fair and representative governance: “The system will treat users fairly and evolve according to their collective will, aiming for its long-term sustainability and viability,” Hoskinson stated. This tenant emphasizes the importance of inclusive governance, where all stakeholders have a voice in the evolution of the system. The upcoming Constitutional Convention in Buenos Aires aims to formalize these governance principles. Preserving user privacy: Emphasizing data privacy, Hoskinson stated: “User privacy must be preserved, both in terms of their actions and their data.” Drawing parallels with the GDPR, he advocated for minimal disclosure and selective and contextual sharing of data. This tenant addresses the balance between transparency and privacy, ensuring that users maintain control over their personal information. Compliance with local laws and regulations: “The system will offer users ways to participate that do not require them to violate local laws and regulations,” Hoskinson explained. This tenant recognizes the global nature of Cardano and the need for users to comply with their respective jurisdictions. Transparency, predictability and verifiability: The final tenant requires that “the operation of the system must be transparent, predictable, verifiable, interpretable and without asymmetries.” Hoskinson emphasized the importance of open source protocols and public verifiability to ensure trust and accountability within the ecosystem.
The way forward
Hoskinson detailed ongoing efforts to formalize these tenants through decentralized governance. «You have to have decentralized governance before taking that path because only through decentralized governance can a decision be made for everyone everywhere; that is Voltaire’s objective,” he commented. The next Constitutional Convention in Buenos Aires, Argentina, scheduled for December 2024, will bring together delegates from 50 countries to finalize and approve the constitutional text based on these tenants. The founder underlined the importance of this initiative beyond Cardano, suggesting that other blockchain communities could adopt similar frameworks to balance technical innovation with ethical governance. “These tenants are being actively discussed by the Cardano community. […] They will act as beacons on the distant horizon that will take Cardano and other blockchain communities where they intend to travel,” Hoskinson stated. Hoskinson concluded the video by highlighting the importance of preserving the integrity of the system over short-term gains. “We should never sacrifice system integrity for the sake of short-term profit or progress on some arbitrary metric like token price or adoption,” he said. At press time, ADA was trading at $0.3536.
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