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Cardano’s decentralized governance has achieved a significant milestone, with over six billion ADA now delegated to Delegated Representatives (dReps), according to Intersect, a member-based organization for the Cardano ecosystem. This marks a significant step toward a more decentralized and community-driven decision-making process.
According to Intersect, over six billion ADA have now been delegated to dReps, which includes 2.6 billion ADA delegated to auto-abstain. A total of 779 dReps have registered, representing 27% of the staked supply. Of those, 193 have voted on the current Constitution Update governance action.
The Plomin mainnet hard fork governance action was successfully enacted on Jan. 29, with the most significant change being the implementation of Delegate Representatives (dReps), who will vote on governance issues on behalf of ADA holders.
Tomiwabold OlajideFollowing the Plomin hard fork, users will continue to accumulate staking rewards. However, as stated in CIP-1694, they will be unable to withdraw them unless they delegated their ADA voting rights to a dRep or a predefined voting option, hence the essence of delegation.
Like staking with stake pool operators, the staked ADA never leaves the user's wallet, and delegating imposes no new spending or selling restrictions.
Delegation, dReps
Delegated representatives (dReps) are ADA holders who register on-chain, allowing other community members to delegate their voting power to them. They act as "parliamentary representatives" in Cardano’s decentralized governance system.
Any ADA holder can become a dRep and take on important responsibilities, as stated by CIP-1694. These tasks include: reviewing and voting on governance actions presented by others and accepting delegated voting power from ADA holders.
Users registering their wallet for the first time, either for staking or delegation, require a 2 ADA deposit to the network. For dReps, a 500 ADA deposit is required by the network.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Yuri Molchan
Godfrey Benjamin
Dan Burgin
Vladislav Sopov