SanchoNet: Shaping Cardano’s Governance Future
8/17/2023
On August 16th, 2023, Charles Hoskinson announced a pivotal milestone for Cardano: the launch of the website for the CIP-1694 Testnet, known as SanchoNet. This testnet heralds a new era of governance for Cardano, aligning with the comprehensive CIP-1694 specifications. Beyond its technical significance, SanchoNet distinguishes itself as a vibrant, inclusive, and community-driven platform, inviting every member to play a role in shaping the blockchain’s governance trajectory.
Moving Towards Minimal Viable Governance
Minimal Viable Governance (MVG) is a streamlined approach to establishing essential governance principles and optimizing decision-making efficiency while minimizing complexity. It fosters a balanced governance structure that aligns accountability with agile responses, driving Cardano toward efficient and decentralized governance.
In the lead-up to the Voltaire Era, Cardano is steadily advancing towards adopting Minimal Viable Governance (MVG) through the strategic implementation of SanchoNet, a dedicated testnet platform. SanchoNet’s phased approach unfolds across six stages, ensuring comprehensive capability optimization.
Additionally, SanchoNet’s iterative framework is instrumental in propelling Cardano toward a fully decentralized and efficient form of governance. This transition leverages MVG’s principles to refine decision-making processes, facilitate consensus, and forge an innovative path forward.
Why SanchoNet?
The choice of the name ‘SanchoNet’ draws inspiration from the multifaceted character of Sancho Panza, immortalized in Miguel de Cervantes’ literary masterpiece. Sancho’s transformation from a humble farmer to a wise governor mirrors virtues that resonate with Cardano’s governance evolution.
SanchoNet’s Community Involvement
SanchoNet defies convention by placing the community at the core of its governance experiment. This multifaceted approach engages diverse stakeholders:
Testnet Ada Holders: Every holder of Testnet Ada will wield the power to craft and submit governance actions, becoming active contributors to the blockchain’s evolution. CIP-1694 outlines seven types of governance actions.
Stake Pool Operators (SPOs): SPOs are pivotal in the SanchoNet ecosystem. They not only run the testnet network but also play a crucial role in voting and proposal submission. During the initial phases of SanchoNet, SPOs have different responsibilities. Apart from block production and network maintenance, they play a pivotal role as the sole participants empowered to vote on governance actions.
Delegate Representatives (DReps): As the voice of the broader community, DReps are entrusted with the responsibility of voting on governance actions. Their decisions consider the collective interests of the community, shaping the direction of Cardano’s development. A DRep serves as the community’s spokesperson, actively participating in voting on governance actions and advocating for the community’s collective interests.
Phases of Progress
SanchoNet’s journey unfolds in six progressive stages, each aligned with the spirit of Minimal Viable Governance, emphasizing meticulous and streamlined progression before advancing to the next phase. This approach ensures the thorough testing and optimization of each capability:
Phase 1: At launch, Phase 1 marks the initial step by introducing the submission of new constitution governance actions. This process enables the careful refinement of Cardano’s foundational principles, establishing a solid groundwork for subsequent stages.
Phase 2: Building upon this foundation, Phase 2 emerges, facilitating the submission of Info Governance actions. This phase promotes transparency and robust information-sharing within the community, fostering an informed and engaged ecosystem.
Phase 3: Transitioning onward, Phase 3 takes center stage, bringing forth DRep registration and delegation. This empowerment enables delegates to effectively represent the diverse interests of the community, solidifying the participatory nature of governance.
Phase 4: The subsequent advancement, Phase 4, introduces the submission of Hardfork governance actions. These actions undergo thorough voting by Stake Pool Operators (SPOs) and Delegate Representatives (DReps) prior to implementation, ensuring consensus-driven decision-making.
Phase 5: Moving forward, Phase 5 ushers in protocol parameter changes, treasury actions, and withdrawals. This extension of capabilities empowers the community with significant control over critical parameters, fostering a sense of ownership and responsibility.
Phase 6: The final stage, Phase 6, concludes the journey by allowing participants to vote in a new committee, express a vote of no confidence, and engage as Cardano community members. This holistic approach to governance ensures a participatory structure that embodies the essence of collaboration and collective decision-making.
Through these six iterative phases, SanchoNet adheres to the principles of Minimal Viable Governance, methodically expanding its capabilities while maintaining a focus on robust functionality and continuous improvement.
Types of Governance Actions
SanchoNet, a pivotal stepping stone on Cardano’s journey to embracing Minimal Viable Governance (MVG), introduces a comprehensive array of governance actions. These actions, intricately outlined in CIP-1697, the Cardano Improvement Proposal, bestow Testnet Ada holders with a remarkable degree of influence over the network’s evolution. This empowerment is destined to extend to the Cardano mainnet, shaping the future of decentralized governance.
Motion of No-Confidence: This governance action entails initiating a motion to express a state of no-confidence in the current constitutional committee. This motion enables the community to collectively assess and influence the committee’s composition and functioning.
New Constitutional Committee and/or Threshold and/or Term Limits: Recognizing the dynamic nature of governance, Testnet Ada holders possess the ability to propose modifications to the constitutional committee’s membership, signature threshold, or term limits. This allows for an adaptable and responsive governance structure.
Updates to the Constitution: Governance on SanchoNet extends to the very essence of the network — the constitution. Testnet Ada holders can propose adjustments to the off-chain constitution. These modifications are recorded on-chain through a hash of the revised text document, symbolizing the significance of community-driven governance.
Hard Fork Initiation: The network’s evolution often necessitates non-backward compatible upgrades known as hard forks. With SanchoNet’s governance mechanisms, Testnet Ada holders can trigger the initiation of a hard fork, underscoring their role in the network’s technical advancement.
Protocol Parameter Changes: A key facet of Cardano’s adaptability lies in its updatable protocol parameters. These parameters influence network behavior. Testnet Ada holders wield the authority to propose and endorse changes to these parameters, ensuring that the network aligns with emerging needs.
Treasury Withdrawals: Governance extends to the allocation of resources. Testnet Ada holders can categorize treasury withdrawals into small, medium, or large based on the lovelace amount. This provides a structured approach to resource allocation, fostering transparency and accountability.
Info: An action that doesn’t have any on-chain impact except for being recorded on-chain.
As these governance actions unfold on SanchoNet, they exemplify the core principles of Minimal Viable Governance. Testnet Ada holders are not just passive participants but active contributors shaping the network’s trajectory. The empowerment experienced on SanchoNet will reverberate through to Cardano’s mainnet, forging a path toward an inclusive, decentralized, and efficient governance structure.
Developers Encouraged to Participate
Developers play a pivotal role in SanchoNet’s success. The platform encourages their involvement by providing essential tools such as Wallets, Explorers, and Voting Centers. Developers are invited to engage by:
Downloading the node v.8.2.1-pre.
Start running a node.
Requesting testnet funds from the faucet to test tools that will be developed.
Building innovative tools that integrate seamlessly with SanchoNet.
Sharing their creations with the community, facilitating a collaborative atmosphere.
Enlightenment in Governance
The upcoming governance hardfork is aptly named after Voltaire, the 18th-century Enlightenment philosopher, and writer. Voltaire’s advocacy for civil liberties, freedom of speech, and the separation of church and state resonate with Cardano’s commitment to open governance, individual rights, and decentralized decision-making. Voltaire’s ideas, though not a comprehensive governance theory, left an indelible mark on democratic ideals, tolerance, and rationality.
Incorporating his legacy, Cardano strives to embody the principles of Minimal Viable Governance, maintaining a balance between structure and adaptability, learning from experiences, and fostering an engaged community. Just as Sancho Panza’s transformation symbolized a synthesis of realism and idealism, Cardano’s governance evolution seeks to harmonize practicality with visionary ideals, guided by the wisdom of its diverse and passionate community.
You can find out more about SanchoNet at the following link: https://sancho.network/
