Cardano founder Charles Hoskinson took to Twitter to clear up misunderstandings about his recently proposed contingent staking.
According to Charles Hoskinson, a conditional staking offer does not mean that Know Your Customer (KYC) verification will be implemented in Cardano.
I'm still at a loss reading some of the comments on contingent staking. It's incredible how polarized some people have become to the extent that they can not understand a basic concept and continue to misrepresent it. (1/10)
— Charles Hoskinson (@IOHK_Charles) February 16, 2023
Hoskinson: “This Model Will Make Cardano Protocol More Functional”
The idea of conditional staking for the proof-of-stake (PoS) protocol was shared early last week after the crackdown on Kraken by the US Securities and Exchange Commission (SEC). The regulator stated that Kraken holds users’ funds and pays rewards for the efforts of others, thereby creating a security.
In its conditional staking proposal, Hoskinson is seeking a formal agreement from stakers and stake pool operators (SPOs) to meet all regulatory requests from the SEC. The founder also claims that the staking model will make the Cardano protocol more functional overall.
In his last statement, Hoskinson said that the conditional staking model is not intended to replace normal staking, and used the following statements: “Conditional staking does not apply a KYC regime on Cardano. It does not replace the regular staking feature and does not remove private pools. A marketplace of SPOs will already exist, allowing people to make their choices, including regular pools of shares.”
With the regulator’s pressure on Kraken, many industry experts are starting to think about the future of staking services. In this process, where future regulations from the SEC are uncertain, the idea of staking remains an uncertain issue. Unless there is much clarity, as most thought leaders argue, American investors may have to seek the same offer overseas.
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