Cardano founder: hope the pledgor and equity pool operator reach a formal agreement to meet the regulatory requirements of the SEC

It is reported that Charles Hoskinson, the founder of Cardano, solved the misunderstanding and criticism about his recent or gambling on Twitter. According to Hoskinson, the contingent pledge proposal does not mean that the KYC system will be implemented on Cardano. In the pledge proposal, Hoskinson hopes that the pledgor and the equity pool operator (SPO) will reach a formal agreement to meet all the regulatory requirements of the SEC. In addition, the founder also claimed that the pledge model would make the Cardano agreement more comprehensive.

Interpretation of this information:

Charles Hoskinson, the founder of Cardano, has clarified the recent misunderstanding and criticism that arose after he tweeted about a contingent pledge proposal. Hoskinson explained that the proposal does not imply any implementation of KYC system on the Cardano network. Instead, he hopes that the pledgor and the equity pool operator will agree to meet all regulatory requirements of the US Securities and Exchange Commission (SEC). Additionally, Hoskinson mentioned that the pledge model will further enhance the comprehensiveness of Cardano’s agreement.

The contingent pledge proposal mentioned by Hoskinson refers to a mechanism that pledges a certain amount of Cardano tokens before becoming a stake pool operator (SPO). In case the SPO fails to fulfill its obligations, the pledged tokens are burnt, leading to a loss for the operator. The proposal has been criticized due to its perceived similarity to a security, which would require KYC (Know Your Customer) compliance with SEC regulations. Hoskinson clarified that the contingent pledge proposal is not a security and that the KYC system is not a requirement for its implementation.

Hoskinson’s clarification is significant as it addresses the criticism about Cardano’s regulatory compliance while highlighting the pledge model’s advantages. The model incentivizes SPOs to fulfill their commitments, leading to a more secure and stable network. Furthermore, the pledge model also makes the Cardano agreement more complete, helping the network to achieve its goals of improved scalability, interoperability, and sustainability.

In conclusion, Charles Hoskinson’s clarification about Cardano’s contingent pledge proposal is a welcome development that clarifies the network’s regulatory compliance. The pledge model’s advantages will provide a secure and stable network, ensuring that the Cardano agreement becomes more comprehensive. The three keywords that summarize the message are Cardano, regulatory compliance, and pledge model.