So we have now passed the point where the decentralisation parameter “d” reaches zero. What does this mean?
The d parameter sets the amount of blocks produced by Stake Pools (like ADAvault) versus the genesis nodes operated by IOG (the creators of the Cardano system). At the start of the Cardano blockchain (the Byron Era) all blocks were minted by centrally controlled nodes, but with the transition to Shelley and the introduction of staking the responsibility for minting blocks and control gradually shifted to the Stake Pools.
The transition has occurred gradually to ensure stability and enable the ecosystem of stake pools to grow. It’s another major milestone that has been successfully managed by the IOG team, and marks a growing confidence in the overall project execution and goals.
The next big decentralisation milestone will be a move to fully decentralised governance which will complete the transition of responsibility for protocol parameter changes from IOG to the community. This will occur with the voting mechanisms that Voltaire will introduce, and will also likely be a gradual transition to ensure stability is maintained.