Cardano’s Charles Hoskinson Defends His Stance on Contingent Staking

• Cardano’s Charles Hoskinson defends his stance on contingent staking.
• Hoskinson was seen responding to Matthew Plomin on the hot topic.
• Further, Hoskinson pointed out the flaws in Plomin’s proposal.

The creator of Cardano Charles Hoskinson addressed some of the “misrepresentations” regarding the idea of contingent staking on Twitter. In one of his recent tweets, he was seen exchanging words with the founder of Mehen Group Matthew Plomin. This was in response to Plomin’s recent tweet on how regulators can kill permissionless staking.

However, Hoskinson stated that his proposal is madness. He also mentioned:

You move from a trustless, protocol-enforced model to a custodial, trusted model. Every single one of these entities would be a money service business and have to spend years and tens of millions of dollars getting licenses across the US.

Hoskinson also questioned Plomin on why he ignored the contractual part of ISPOs. He also mentioned that Plomin completely threw that part out and said that he is advocating taking customer funds upfront and then getting signatures later.

Plomin also defended his proposal and stated that the main issue with contingent staking is that it changes the nature of the relationship between the SPO and the delegator. Hoskinson replied to the tweet, stating that it is a new business model and that every single non-CS staking pool is operating and still around.

Hoskinson also recently released a tweet yesterday, in which he expressed his disappointment that people couldn’t understand a basic concept and continued to misrepresent it. He also cleared the air that contingent staking doesn’t replace normal staking. He asserts that contingent staking neither substitutes for standard staking nor private pools, nor does it impose a KYC system on Cardano.