Thursday, February 25, 2021

IOHK Takes a Vital Step to Further Decentralize Cardano Network

In order to make the Cardano network more decentralized, IOHK, the software firm behind the development of Cardano (ADA), has taken a vital step to distance itself from the running of the Cardano blockchain.

The firm has delegated 3.2 million of its ADA holdings to 100 different stake pools ran by the Cardano community. This is part of IOHK’s larger plan to delegate funds to a new set of pools each quarter and support operators in developing countries.

Read Also: Charles Hoskinson: Metadata Transactions Are Ready; First Project will Migrate from Ethereum to Cardano

Private Stake Pools on Cardano Get 3.2 Million Delegated ADA

In relation to its mission to introduce a fairer and more community-oriented delegation, IOHK has announced the delegation of all of the funds from its public pool to the stake pools run by the community.

IOHK tweeted, “Last night, we delegated 3.2M ADA to 100 Cardano community stake pools, based on mission, impact & network contribution. Next quarter, we’ll delegate to a new cohort. Here @timbharrison reminds us why we feel what we are doing matters #decentralization.”

This system was first introduced in November 2020. Back then, the marketing and communications director at IOHK, Tim Harrison, outlined the firm’s plan for the next 12 months.

In December 2020, the company decided to start delegating a portion of its funds to private stake pools ran by the community after it retired the majority of its public stake pools.

Read Also: Charles Hoskinson Announces Date for Epoch 257; Staking Pool Operators Get Ready To Take Control

About 15% of ADA belonging to IOHK were set out to be delegated to the Cardano community. Each quarter, the set of pools that will receive the funds will be changing.

Going by the software company’s announcement, 3.2 million of its ADA holdings has been delegated to 100 stake pools on the Cardano network.

In a tweet on 4th February, IOHK wrote, “And here is that full list of community pools we delegated to this time – congratulations & to every single community pool out there making their contribution to the Cardano ecosystem. This is just a subset and here’ll be fresh opportunities for more pools next quarter.”

Read Also: Charles Hoskinson Explains Why Cardano Achieved Its PoS Upgrade Faster Than Ethereum

Why the First 100 Pools Were Chosen

According to the company, the first 100 pools were not chosen at random. They were chosen because they are pools believed to exist with a purpose.

Sometimes in 2020, Harrison wrote this:

“Our primary objective here is to delegate to pools that we feel support our wider purpose and mission of economic inclusion – decentralization of sustainable technology, empowerment through education, and opening up economic identity for all,” Harrison wrote back in 2020.


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Tobi Loba
Tobi-Loba is a creative and an award-winning writer with over 5 million readers from all over the world. She has B.A in English and Literature from a reputable University and currently studying for her M.A in the same field. She recently became a contributor at Herald Sheets in order to satisfy her thirst in reporting crypto and blockchain occurrences, the interest she built over the years.

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