Shelley's Lasting Impact: Cardano's Decentralized Staking Model
Cardano's Shelley upgrade, launched in July 2020, implemented a crucial design choice that still defines the network today. It allowed ADA holders to earn staking rewards without ever giving up custody of their coins.
This non-custodial model has several key features: no custody risk, as delegators keep their private keys at all times; no lock-up period, meaning holders can move or sell staked ADA without waiting; and no slashing penalty for pool downtime. This combination made it easier for participants to join the network.
The result is a high level of participation, with 2,882 active stake pools securing 21.56 billion ADA as of mid-2026. This decentralized approach has kept block production relatively distributed compared to other networks where a few staking providers dominate.