Unlike many other PoS blockchain ecosystems, Cardano features a unique staking model, where any delegator of ADA tokens should be part of the broader decision-making process if they are to receive staking rewards.
This approach is indicative of a different philosophy that clearly focuses on the efficient development of the ecosystem. For that reason, it is crucial for any ADA delegator to understand how Cardano’s governance mechanism works.
In this feature, we will take a closer look at Cardano’s inner workings and the nuances that set it apart from many other blockchain ecosystems.
What Cardano Governance Is and Why It Matters
Cardano governance is designed to distribute authority across its community, which is critical for the long-term sustainability of the entire ecosystem.
While in other PoS blockchains the concentration of tokens with several major validators may introduce centralization risks, the system in Cardano aims to distribute the governance among the largest number of participants.
Cardano’s governance framework enables on-chain decision-making for protocol updates, parameter changes, and ecosystem-level initiatives. Proposals are submitted, reviewed, and ultimately voted on through mechanisms that balance between inclusivity and efficiency.
The Role of DReps in Cardano Governance
Delegated Representatives, also known as DReps, are the key element of Cardano’s unique governance model. Put simply, they are individuals or organizations that represent the voting power of ADA holders who choose to delegate their governance rights to them. Anyone can become a DRep by depositing a refundable amount of 500 ADA (approximately $200 at the time of writing), which is a relatively low entry threshold compared to many other blockchains, such as Ethereum.
Most commonly, users delegate ADA to a DRep whose values, expertise, or strategic vision they share or appreciate. DReps then go on to participate in governance decisions on behalf of their delegators.
This structure enables informed decision-making on a grander scale. Governance proposals can be technically complex or economically nuanced, and DReps are expected to dedicate the necessary time and expertise to thoroughly evaluate them. In doing so, they act as stewards of the network’s long-term interests.
As of January 2025, delegating ADA has become mandatory for those who wish to claim staking rewards. Aside from selecting a DRep on their own, users can trust wallets to automatically assign a DRep for them—Trezor, for example, uses Everstake as the default, thanks to our proven track record of high performance, security, and a known commitment to responsible governance.
Finally, a user can use their ADA to automatically abstain from voting or to automatically vote yes for no-confidence votes.
Source: https://beta.cexplorer.io/article/guide-to-delegating-ada-to-a-drep
For Trezor users, Everstake has implemented the option to choose a DRep of their own, thereby avoiding limitations on their freedom of choice.
On the overall Cardano staking scene, this is a remarkable move aimed at enabling greater decentralization and raising awareness of the importance of governance.
Why Choosing a DRep Matters for Users
At Everstake, we believe that the ability to choose a DRep is a fundamental expression of decentralized governance. By selecting a DRep, users actively shape how their voice is represented within the system.
This choice enables users to align their governance participation with their priorities. Some may prefer DReps focused on technical expertise, while others may prioritize ecosystem growth, financial sustainability, or decentralization principles. The freedom to delegate based on these preferences ensures that governance remains diverse rather than dominated by a single viewpoint or a narrow set thereof.
Equally important, the option to change or withdraw delegation creates accountability. DReps must act transparently and responsibly, knowing that users can reassign their voting power if trust is lost.
Everstake has given ADA holders a unique opportunity to choose a custom DRep during staking transaction creation, a breakthrough feature absent from most wallets. Thus, if a user wishes to change the default DRep for any reason before they start staking their ADA, they can do so using Trezor, as illustrated below.
One can choose between Everstake and another DRep in a series of simple steps. Hit Start Staking in the menu.
Then, having read about staking in the nutshell, hit Continue.
In the next menu, expand Delegate to Everstake.
To choose your DRep, you will need to specify their address.
While this option offers users greater flexibility and choice, it is advisable to stay with Everstake due to our proven track record of reliability, security, and active governance participation.
The staking process is pretty straightforward: after connecting your wallet and setting up the account, you simply confirm the transaction, as the entire balance will remain spendable. To learn more about the mechanics of the staking process and choosing a DRep, refer to our detailed guide. Note that Everstake’s validator fee for ADA holders is currently 0 percent.
Сonclusion
Cardano governance is about building an adaptive system that can develop successfully over decades, and where decisions are well-informed and democratic. In a way, it is a remarkable illustration of sustainable decentralization.
In an industry where many networks struggle to strike a balance between innovation and stability, Cardano’s governance model can be seen as a deliberate move toward long-term thinking.
Most importantly, Cardano recognizes that true decentralization is about society just as much as it is about technology.
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