Proposed CIP-X: Multi-DRep Delegation

[Tarrant64]

I'd like us to consider expanding upon what was accomplished with CIP-18 and look at the concept of doing the same multi-delegation process for DReps. As I am personally short on the deep technical knowledge around how this would or wouldn't successfully be developed, full disclosure I put my thoughts in AI to reference CIP-18 and come up with a proposal based off of that to do the same thing essentially with DReps. I would appreciate any and all feedback on if this is at all possible.

1. Objective
Enable a single wallet to delegate its total voting power (derived from its ADA balance) to multiple DReps with user-defined weightings, while maintaining a unified account model and compatibility with Cardano’s governance system.

2. Core Concept
Extend the CIP-18 idea of multiple stake keys to create “voting delegation keys” (VDKs), each associated with a specific DRep.

Instead of splitting funds across addresses (as in CIP-18), assign a percentage of the wallet’s total voting power to each VDK, which is then linked to a DRep’s ID.

The wallet’s total ADA balance remains intact, but its voting influence is distributed according to the specified ratios.

3. Technical Modifications
Key Derivation:
Use a hierarchical deterministic (HD) wallet structure (per CIP-1852) to derive multiple VDKs from a single root key, similar to CIP-18’s stake key derivation.

Path: m / 1852' / 1815' / 0' / 3 / , where 3 denotes a new role for governance delegation keys (distinct from 2 for staking).

Delegation Certificate:
Modify the existing stake delegation certificate format to include a list of (VDK, DRep ID, Weight) tuples.

Example: [(VDK1, DRep_A, 40%), (VDK2, DRep_B, 60%)].

Total weights must sum to 100% to preserve the wallet’s full voting power.

On-Chain Representation:
Submit a single transaction with a multi-DRep delegation certificate, recorded on-chain.

The protocol aggregates the wallet’s ADA balance and splits its voting power proportionally across the specified DReps during governance tallying (e.g., per CIP-1694’s snapshot mechanism).

Wallet Interface:
Wallets like Lace would allow users to select multiple DReps and assign percentages (e.g., 40% to DRep A, 60% to DRep B), generating and signing the certificate automatically.

4. Governance Integration (CIP-1694 Compatibility)
Voting Power: The wallet’s total ADA balance determines its voting power, but the VDKs distribute this power across DReps without fragmenting the underlying funds.

Snapshot Handling: During governance snapshots, the protocol recognizes the multi-DRep certificate and allocates the wallet’s voting power accordingly (e.g., 4000 ADA with 40% to DRep A = 1600 ADA voting power for DRep A).

Abstention or Default: Allow an optional “abstain” or “default to constitutional committee” weight for unallocated voting power.

5. Advantages Over CIP-18’s Approach
No Fund Splitting: Unlike CIP-18, which splits funds across addresses, CIP-X keeps funds unified, simplifying wallet management and avoiding transaction drift.

Scalability: Supports delegation to many DReps (e.g., 5–10) without generating excessive addresses, as voting power is a metadata-level split rather than a UTXO-level one.

User Flexibility: Users can express nuanced preferences (e.g., supporting multiple DReps with different ideologies) while maintaining a single wallet.

6. Challenges and Solutions
Complexity: Adding multiple VDKs increases wallet and protocol complexity.
Solution: Limit the number of DReps per wallet (e.g., max 10) to balance usability and decentralization.

Verification: Ensuring weights sum to 100% on-chain.
Solution: Enforce this in the transaction validation rules.

Revocation: Users may want to update delegations frequently.
Solution: Allow new delegation certificates to overwrite previous ones, reusing existing stake key revocation mechanics.

7. Example Workflow
User with 10,000 ADA in Lace wallet:
Opens “Governance” tab, selects DRep A (30%), DRep B (50%), and DRep C (20%).

Wallet generates 3 VDKs, creates a certificate: [(VDK1, DRep_A, 30%), (VDK2, DRep_B, 50%), (VDK3, DRep_C, 20%)].

Submits transaction to the chain.

In a governance vote, DRep A casts 3000 ADA worth of votes, DRep B 5000 ADA, and DRep C 2000 ADA on the user’s behalf.

Why This Could Work
Reuse of CIP-18 Principles: The HD key derivation and multi-key concept are directly adapted, ensuring familiarity and compatibility.

Governance Fit: It aligns with CIP-1694’s vision of delegating voting power to DReps while adding flexibility for users to diversify their influence.

Decentralization: Encourages broader DRep participation by letting users support multiple representatives without needing separate wallets.