And obviously, we'll have a lot of people from the Voltaire team there to talk about governance. Sam Leathers is going to be there, and Sam is going to do a master class workshop on Sanchonet, which is 1694's testnet. The Hydra team is actually in the office today preparing for RareEvo to talk about a Hydra Master Class where they're going to show you guys how to use Hydra, Mithril, and other technologies together.

This has to wait for CIP1694 because it does change the trade-offs of Cardano. No matter how much of an advancement it will have, some implications on the monetary policy and incentive schemes, and it's going to be a different operating model than what people are used to.

The design for Praos should work its way throughout the summer, and then the very next thing is Leios. And then with Leios, alongside lots of modeling, should have a direct line on the site of a very good design for the system. Then once that design is in place, the community through CIP1694 can decide if they like the trade-off profile, and then input endorsers can be implemented through a series of upgrades and iterations.

The interplay of CIP1694 is that what 1694 can do, which is independent of Intersect, it's important not to conflate the two. This is kind of the government of Cardano, and then over here, Intersect is kind of an execution vehicle. What the government does is it gives permission. When things like protocol parameters, things like hard forks, all these types of things, it gives permission to do that.

Now there's a big open question of alternative clients and blueprints. Okay, so there are some people who want to do a Rust client. I saw on Twitter there's some people that want to do TypeScript. That's great and fine, but the issue is what is the canonical Cardano. What is Cardano? Well, a major innovation that's occurring right now with the CIP1694 work, the Conway era that's being pushed out with sanchonet, is that we actually wrote the specifications for these not in a prose like LaTeX but actually in AGAD.

We have a continuity in GCD backlog that we put together as a suggestion and as it moves over to the members-based organization then there's a debate and discussion amongst all the members and that becomes a universal backlog and that universal backlog can be ratified by the government of Cardano which would be 1694 if ratified.

Really the point of 1694 is to have a deliberative body that's endowed with the power of the AD holders through a series of checks and balances to review and understand and in some cases provide funding to buckets or to give consent to execution vehicles to do something.

Once it's been proven in an objective, open way, then they can have a great voice in a roadmap that can then be ratified by others. Now, what if you disagree with all of this and you think all of this is nuts and you think it should go in a radically different way? Well, that's the point of something like CIP1694 because you could have an ALT vision and you can say, you know what, vote for that. And if the government of Cardano says this alt vision is the way to go and all of this is nonsense, well guess what, the alternate vision wins.

The point of 1694 and the enormous progress that now more than a thousand people, more than 50 countries have put a lot of time into to try to get to is to create that voting layer so decisions can be made and once made the vehicles of the ecosystem can execute them and execute them well.

I'm really proud of each and every one of you. Just getting a taste of the amazing creativity, passion, and ideas of the community during the CIP1694 process, what's happened with Cardano DeFi and the NFT space in Cardano really is a good indication of how powerful we really have become as an ecosystem.

Today is July 29, 2023, and this is a follow-up video to some of the videos I've made in the past about 1694. I'm going to go into a lot of detail about some current thinking of a minimum viable Constitution and going beyond that to a final Constitution, a 1.0 product by and for the community.

In a prior video, I talked a lot about Cardano, the open-source project, and the governance layer, the execution layer, the management layer, the oversight audit control of how great software is made. However, Cardano is getting a government. 1694 is the closest thing we have to it at the moment.

So, if you look at CIP1694, one of the things that we've been exploring is how do we, because you have the dRep side, you have the Constitution side, and then you have the SPO side. So, for these three things, how do you constrain behavior? This is via liquid feedback, so very similar to the liquid democracy conversation.

The initial ratification of that is going to be the ratification of 1694. This doesn't contain big flowery language and rights and duties and responsibilities, but rather it contains just a collection of things that are required to convene an interim working group, an interim constitutional committee, something to get started because you need to bootstrap a system.

And the idea of the discussion is to establish a baseline so that that could become an input to hosting somewhere between 100 to 200 workshops throughout the world. And it can provide all the funding necessary for those workshops. So, this is an innovation that we learned from CIP1694.

Then that will then be voted on by the CIP1694 government. Then we're done. So, there are basic steps. So, we have to bootstrap the system, you need some initial parameters

So, it worked really well with 1694 where there were some initial stuff that came together and then went 50 plus workshops were done. But now we ask more of the workshop participants because they actually have to go to a constitutional committee, a convention, and create, ratify something.

Once that's in place, what will happen is because we've built this into 1694 the CIP, there's a model to replace the Constitution version 0 with a new version. So, they just follow that, and that new version comes into place.

And then they come on over and, you know, they participate and actually put some serious time and roll up their sleeves and decide. It's very egalitarian, it's not connected to a person's ownership of ADA, it's connected to the mere skill and them convincing their local community that they're the most qualified person. And then obviously the community has an on-chain update system to go from the minimum viable Constitution, which is the bootstrap, to one. So then there is a question of what ratifies the bootstrap. That's the ratification of the CIP1694 altogether.

And then it moves over and becomes the law of the land for the digital nation that is Cardano. So, I hope this answers some questions about that. The MVC will have some more specifics to release but obviously, you'll be able to read it and see it because it's part of the special voting event for 1694 and make a decision if you think that's good. Pretty cool stuff, huh?

..and a lot of third party contribution for the HYDRA code base and a nice open cadence as well as everything living in git. So that's what we should aspire for, and it's going to be a lot of fun to move things over. A huge amount of progress as well on CIP1694, we had the workshop in Edinburgh. It was very successful as a closing workshop to finalize a candidate spec and now Sanchonet is underway. That is a very specialized test net specifically to give Bleeding Edge features.

For people to test the rollout of 1694, build against it play, as did reps, kind of like the incentivized testnet and it will connect to wallets via the CIP95 standard, which is right now in the final stages of ratification. So, node 8.2 has just been tagged. And should be working its way this week and next week and that will enable Sanchonet for people to play around with it and throughout the next 6 to 8 weeks you'll see a lot of features roll their weigh in on the Constitutional Committee concept to dRep concept.

When we had the 1694 workshop together, over 1000 people participated in all the different workshops. People came in from Latin America. People came in from the Middle East, people came in from Asia, people came in from Africa and other places, but you know Internet trolls, what they like to do is they like to say just crazy outrageous things or create this this boogeyman that's going to come in and kill all your opponents. But your chosen coin is magical. How about we all just get along?

When will it come? It's your decision as a community. Why? Because after 1694 comes, you decide. Your dReps decide. There's a roadmap and you say you know; we could really aggressively push and escalate scalability like input endorsers.

But it was actually really wonderful to engage with the community at the Capstone 1694 workshop, and it was really a roll up of the commentary of over 1000 people from 50 different workshops, about half virtual, half in person throughout the world. What we learned from the process is that we have.

Now, node 8.2 is near eminent and it's carrying with it, Sancho net. So, what we broke down is a series of milestones, and Sancho net that will flesh out a full implementation of 1694, allowing people to test what it's like being a a dRep, submitting a constitutional update, writing custom code for dReps, including smart contracts, and managing multiple users as a dRep build political parties.

At some point, there'll be community wide vote for ratification of 1694 and then it's just a matter of what level of quality assurance is required to do a hard fork should the Community decide this is what they want to do. Now, there's a lot of things that have also launched.

For example, the workshops that were held in 1694 hold a very tight moderator pattern that a lot of people agreed was very productive to actually have meaningful conversations and give people the right to be heard. A super important thing.

In the future, in terms of the vision thing, there's now a way to debate and ratify it through a members based organization intersect, and there's also a way to vote on it. That's the point of 1694, and the community can decide whether that vision makes sense or another vision, or a hybrid vision, for example, makes sense.

It's also fundamentally unfair to think people are one-dimensional. The reality is we're very complicated. One of the things I was most proud of when we put all these workshops together with the community for CIP1694 with the diversity of people in the room, there were people who worked really hard to travel all throughout South America, including Rhoda candidate, constitution and principles, almost revolutionaries inside the room.

Talk about on YouTube, do some interviews, host some Twitter spaces, a lot of really cool people there, Cardano Stoners Club, for example, was represented in 1694. Never thought to see him there, but they were there and I remember some of my fondest memories, are joining late at night, on Twitter and talking to him, and it was really cool to see that they're engaged, and they want to educate people as well.

In fact, I got. It right here. All of the CIP1694 workshops, the cynicism that has so permeated our society is, of course, permeating Twitter, and there's some people saying these things don't matter, but they do, and they matter so much, and I just want to take a moment to thank everybody who is participating.

What's happening right now is that throughout the world, all these red pins indicate places that workshops are being held. So, for example you click here, you zoom in as a California CIP1694 workshop contact information, what people are doing there.

So, all of the feedback from these many different places is going to be aggregated together. We're all going to come together in Europe and we're going to have a closing workshop to sort through all the community's commentary and come up with a a draft final specification of 1694 and then the next step is to get a fully functional testnet and then for the people to vote and if they vote for it, we'll fork it and then Cardano has an official government. How about that? And so, everybody can go and become a dRep, you know and. They can actually start opening up the Treasury. You can do whatever you want. You're can run the whole show.

Ohh it's going to be really cool. When we opened up staking, thousands of people came. So dReps. thousands of people are going to come and they're going to be some lively crazy debates and it's going to be really cool to watch all those happen, and people talk about priorities and vote on CIPs and all these other things. So, if you like CIP50 and Michaels convinced you - vote on it. Bring it through. This is the point of CIP1694. You know, for people be in charge and do all these cool things.

And it just needs to get resources and need to get good governance. And that's the point of things like an MBO and 1694 and these other institutions that are coming in.

But what we're trying to do is structure those conversations towards specific things. For example, we have 1694 coming up in July, there's going to be a workshop in Edinburgh, Scotland.And that's going to be the closing workshop to aggregate the feedback of the 43 CIP1694 workshops that are going to be held over the next two months and basically come together with a final candidate to basically be deployed to a testnet and voted on by the Community whether they want to approve that or not as the approach form.

There's going to be an enormous amount of discussion about 1694 and a lot of opportunity to engage there. So that's an example of a cardono oriented conversation in July and beyond, there's going to be a lot of conversation about the MBO and how to join it, what to do with it. All these kinds of things, because that infrastructure is now where it needs to be, it's building up bubbling up.

What’s time frame on input endorsers. Well, once all the final papers come in, it's up to the community on how quickly they want to move. The priority is CIP1694 and the GCD backlog, which is coming along at lightning speed. And there's a lot of different directions one can go in.

So as many of you know, there's been an enormous amount of work on CIP1694 both internally and externally so, on internally there's a very aggressive development effort that's underway. The node that CIP1694 is being built on for testing is node 8.0, node 8.0 is out. In fact, already node 8.1 is under construction and will be released the next few weeks.

So, what's going to happen is those workshops are going to solicit and gather enormous amounts of commentary and feedback, and then it's all going to be funneled into a closing workshop in July in Edinburgh in Scotland. The goal of that workshop is to ingest all of the comments from the 43 community workshops that are underway for 1694 and then kind of argue over some of the finalized design principles of and parameters of 1694 and get those into the final step.

Now there's been a lot of work right now to figure out how to create an RFP program, a grant program for people interested in building community tooling for 1694 and that's underway at the moment. There'll be some announcements about that June and July.

The idea is that once things are where they need to be, and if we can get 1694 of a line based on the Community vote and Cardano hard forks to adopt that, it would be really cool to actually have the lab measure Cardano and see where our decentralization sits in relation to Bitcoin and other major cryptocurrencies like Ethereum.

...and that's going to be running in parallel with the core team that does 1694. The same for UTXO HD, which is a different way of storing things so that you can utilize a persistent storage, a hard disk in addition to in memory storage. These were both critical path items for complete decentralization of the system, so they're kind of first-class citizens with CIP1690.

To get things where they they need to go. So there's an enormous amount of good thought there, but that's something in scope this year in terms of the engineering effort and then the intention would be a post CIP1694 integration. There's still a lot of open questions about how these heavy crypto primitives can be integrated.

And the road maps can be voted on and the CIPs can be voted on and legitimized through the governance process, 1694, which will include thousands of representatives and basically a liquid democracy, which was the intention from the beginning and because of the SL CL model sidechains will enable Cardano to adopt radically different philosophies.

This is a huge roll up, over 8 months of work went into Cardano node 8.0.0 For a variety of reasons, things kind of lived on different branches, and they eventually got all brought in after we did the SECP256k1 hard fork and this is the beginning of the Conway Ledger era, which means that when you look at CIP1694. It's going to be added into this family of nodes and then we can test it in pre prod.

There's a lot of fun here, and I'd love to see what you guys do with the CLI polling and hopefully we can see a lot of cool new governance features to experiment with and play with, added to this soon so that a lot of people can kind of talk around what they like and dislike about CIP1694. Cheers.

You can look no further than the actions of CIP1694 on Cardano, where we're literally constructing together a government with the Constitution and delegated representatives, stake pool operators, and all kinds of checks and balances and layers and control third open, deliberative process, which will ultimately be approved by all the ADA holders.

That's called Treasury, and there's 1.5 billion Ada in the treasury. The point of CIP1694 and the members-based organization is to create the rails for you, the community, to unlock and decide what level of support you want to have for growth hacking in the ecosystem.

They could say stuff like that, and they could pursue that and that's perfectly reasonable and fine. It's something you're going to have to think about and that's really the point of the dReps. That's really the point of sub 1694 or these things, to give a platform for those kinds of discussions.

You go and rally people, you get things done. We think, for example, it's a good idea to have a more sophisticated governance layer than anarchy on Cardano, so we and others are advocating for 1694. And so, we have to build stuff, we have to hold workshops, we have to do all kinds of things.

A legal defense fund, dozens of things. All of those are legitimate and you, the community, through the MBO, through CIP1694, can participate, talk about those types of things. And the point is, it gives you the power to make decisions in your wisdom of what directions you need to go.

Meanwhile, the reality on the ground has always been the same. It's a decentralized protocol. So that's the point and if that's what you want, then we need to work together, get this thing off the ground, 1694, and put it all together.

That is the moral hazard of the enlightened few self-appointed who can never be fired and hold the resources. The point of 1694, the point of the design of Cardano, the point of the Treasury System, the point of decentralization is those kinds of things can't happen by design unless you choose them to, in which case you voted for it and you have to deal with the consequences of it collectively as the Cardano masses.

And then when you point that out, they play the victim and say that we're being bullies or these types of things. Those people aren't insignificant, they have a voice in the ecosystem and when CIP1694, if it gets passed, comes into play, probably will become dRep and make it their life mission out of principle to vote against every single thing I propose. Not because there's merit or lack thereof but because of a personal distaste for whatever reason.

So, in the coming months, lots of workshops are going to be held. In July, there's the Capstone workshop and at Edinburgh for 1694. Lots of cool things have happened on the MBO and continue to go and moving in the right direction and Cardano will be more decentralized than ever by the end of the year.

But that's just one thing. You could look at other metrics as well and the point is that's part of governance. There's a lot of data that's ready to go, ready to fire off and the point of 1694 is to give you a working government. MBO could be a working government but you have to still program that giant robot. You have to tell it where to go, what to do and that's ultimately your decision. And it's like what Benjamin Franklin said as he left Philadelphia on his elegant Rickshaw and they asked him, Mr. Franklin, what have you given us? And he said a republic if you can keep it.

Similarly, 1694 in the MBO and other things only work proportional to the inspiration and participation of a tireless group of people who care about the protocol and what we collectively agree is an important thing to measure and optimize as an ecosystem. We'll help where we can. But because we're decentralized, we're just a single actor in a broader course and ultimately, it's your decision as a group where to go and what to do. And as Paul Harvey would say, now you know the rest of the story. Thank you much.