Cardano recently underwent an important update called the Chang hard fork, introducing new on-chain governance mechanisms allowing users to make decisions through delegated representatives (DReps).
Introduction to the New Cardano Era
According to its roadmap, the development of the Cardano blockchain is grouped into five different eras. The project entered the Voltaire era around May this year. This period is focused on governance, enabling network participants to present and vote on Cardano Improvement Proposals (CIPs) through a staking and delegation process. This was made possible by the Chang hard fork, which took place a few days ago. Some users have raised concerns about the need to participate in the governance process to continue receiving staking rewards.
Staking Reward Options
Charles Hoskinson clarified in a response on X that users now have three options, debunking rumors that delegation is mandatory for receiving staking rewards. He noted that users wanting to withdraw their rewards could choose one of three options: a vote of no confidence, abstain, or delegate to a DRep. It is important to note that all three options require action, and doing nothing does not count as abstaining.
Clarification from Charles Hoskinson
Hoskinson mentioned in his statement: "To clarify, a user needs to choose one of three options to withdraw staking rewards: a vote of no confidence, abstain, or delegate to a DRep. Wallets like Lace in the UX will automatically choose abstaining if a user selects only delegation, simplifying the process."
The Cardano Chang hard fork update brought new governance mechanisms, requiring users to choose one of three options to receive staking rewards. Charles Hoskinson clarified these changes to eliminate any doubts and misunderstandings.
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