Cardano Foundation Reduces Voting Power, Delegates 220M ADA to DReps

TLDR

• The Cardano Foundation has delegated 220 million ADA to 11 Delegated Representatives to decentralize governance power.
• Each selected DRep will receive 20 million ADA, focusing on Adoption and Operations to enhance Cardano’s ecosystem.
• The total delegation to the community now stands at 360 million ADA, reflecting a shift towards community-led decision-making.
• The Cardano Foundation self-delegated 171 million ADA to ensure all assets actively participate in governance.
• This move reduces the Foundation’s voting dominance by 43 million ADA, giving more control to the community.

The Cardano Foundation has delegated 220 million ADA to 11 Delegated Representatives (DReps), transferring governance power to the community. The move reflects the Foundation’s ongoing efforts to decentralize its decision-making process and involve more community members in shaping the network’s future. With this delegation, Cardano Foundation reduces its voting power while strengthening the influence of community participants.

Delegation to Adoption and Operations DReps

The Cardano Foundation has selected 11 DReps to receive 220 million ADA, with each delegate receiving 20 million coins. The focus of the delegation is on two pillars: Adoption and Operations. These DReps will play an essential role in the Foundation’s governance, particularly in expanding Cardano’s real-world utility and managing network operations.

Adoption DReps include ecosystem builders and stake pool operators (SPOs), who contribute to onboarding users into the Cardano ecosystem. Operations DReps bring valuable expertise in daily network management and security. Through this strategy, the Cardano Foundation aims to ensure that governance decisions are informed by diverse perspectives and practical experience.

Cardano Foundation Shifts Governance Power

This delegation increases the Foundation’s total ADA delegation to the community to 360 million coins. The Foundation’s self-delegation of approximately 171 million ADA ensures that all its holdings actively participate in governance. As a result, the Foundation’s overall voting dominance has been reduced by 43 million ADA, empowering community-driven DReps with greater decision-making influence.

In a statement, the Cardano Foundation emphasized that this milestone is a key step in its governance roadmap. The decision to reduce internal control and delegate power to the community reflects a commitment to decentralizing governance and broadening the decision-making base. The Cardano Foundation believes that this move will drive a more balanced and inclusive approach to Cardano’s future development.

The Foundation’s governance changes also reflect its broader strategy to expand Cardano’s ecosystem, including partnerships and investments in real-world assets. As part of this vision, the Cardano Foundation has committed $10 million to Cardano-based real-world asset (RWA) initiatives and is working to strengthen stablecoin liquidity across its network.

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