How Decentralized is Cardano Governance? DReps (Delegated Representatives) are central to Cardano's decentralized governance, voting on behalf of ADA holders who delegate their voting power. This analysis covers the current top DReps, governance thresholds, and other key aspects. Overview As of now, 153.8K people have delegated 11.73B ADA in voting power to DReps. However, 105.4K individuals have chosen to delegate 6.23B ADA to the Abstain DRep, while 5,200 people have assigned 173M ADA to the No Confidence DRep. This means 68% of participants have opted to abstain, leaving only around 48% of total voting power actively delegated to autonomous DReps. A significant portion of voting influence remains unused. The total ADA in circulation is 35.32B, yet only about 33% has been delegated. Only 14% of circulating ADA coins have been delegated to autonomous DReps. Since ADA on centralized exchanges is likely undelegated, this percentage reflects a relatively low engagement in governance. It’s reasonable to assume that many ADA holders have yet to delegate to a DRep, leaving a substantial portion of voting power untapped. Top DReps The current top DReps and delegated voting power are: YUTA: 167M ADA from 1,094 delegators EMURGO: 296M ADA from 187 delegators Yoroi Wallet: 255M ADA from 5243 delegators Eternl DRep Committee: 213M ADA from 6463 delegators Blockdaemon: 201M ADA from 70 delegators CryptoCrow: 197M ADA from 1,946 delegators Cardano Foundation: 190M ADA drom 140 delegators Sebastien Guillemot: 169M ADA from 996 delegators SIPO: 130M ADA from 339 delegators BTBF_XSP: 130M ADA from 339 delegators The top 10 DReps include two founding entities—EMURGO and Cardano Foundation. Meanwhile, IOG has publicly confirmed that it will not register as a DRep. Among the top DReps, you’ll also find representatives from two wallets—Yoroi and Eternl. Yoroi is a significant DRep due to a default or one-click delegation option in its wallet, making it easy for users to delegate to their team. Eternl wallet offers similar functionality, enhancing their DRep prominence. This default setting has likely contributed to their strong representation in governance. Minimum Number of DReps Required to Approve a Governance Action Just like block production, we can assess the decentralization of Cardano governance by identifying the smallest group of entities that hold enough voting power to control the system. For a governance action to be ratified, it must reach a specific approval threshold. However, Info governance actions are an exception—they aren’t ratified in the traditional sense. Now, let’s examine important governance actions and determine the minimum number of DReps needed for approval. This analysis helps understand how decision-making power is distributed across the ecosystem. Update the Cardano Constitution: 36 DReps (threshold is 75%) Initiate a Hard Fork: 26 DReps (threshold is 67%) Withdraw from the Cardano Treasury: 26 DReps (threshold is 67%) Change a Network, Economic, or Technical Parameter: 26 DReps (threshold is 67%) Change a Governance Parameter: 36 DReps (threshold is 75%) Let us add that the top 14 DReps have more than 50% voting power in governance. Good News from EMURGO The positive news is that EMURGO has confirmed they will not use Genesis ADA for their DRep. Instead, they are considering delegating ADA to other DReps outside the top 10—possibly even beyond the top 20—to promote decentralization. Additionally, the new CEO will be discussing with the Yoroi wallet team whether it is appropriate for them to set delegation to themselves as the default option. Since this is the easiest way for users to withdraw staking rewards, it has led to a high number of delegators choosing Yoroi’s DRep. This ongoing discussion could shape future delegation practices. Cardano Foundation Supports Decentralization The Cardano Foundation delegated 20M ADA to 7 DReps (140M ADA in total), committed until at least the end of 2025, aligning with the Net Change Limit period. Selection criteria included: Technical Contributions Behaviour Consistent with CF Strategy Governance Track Record Voting Power Selected DReps include Tempo.vote, Sidan Lab, Socious, Cerkoryn, Kyle Solomon, Chris Gianelloni, and Mesh. Conclusion At first glance, voting power distribution might seem low, considering there are nearly 1,000 registered DReps. However, it is still more decentralized than when the three founding entities controlled Genesis Keys. To ensure the system’s long-term health, it’s important to continuously expand power distribution. If EMURGO and Yoroi are viewed as a single entity or closely linked actors, they would hold significant influence. While top DReps don’t always vote in unison, the approval of governance actions likely requires a larger number of DReps than listed above.
