Cardano has recently completed its Chang upgrade, symbolizing a shift towards a decentralized governance system where ADA holders can now actively participate in determining the network’s future course of action. This transformation marks a significant milestone in the evolution of Cardano and opens up new possibilities for the community.
The Chang upgrade brings about several important changes to the Cardano ecosystem. One of the main highlights is the decentralization of Cardano’s governance through the implementation of on-chain voting. This empowers ADA holders to directly influence governance decisions or delegate their voting power to trusted representatives called Delegate Representatives. Additionally, the upgrade enhances smart contract capabilities with PlutusV3 and introduces a new governance structure along with cost model improvements.
The transition to Cardano’s new governance model will occur in two distinct phases. The first phase is currently underway and involves the establishment of an Interim Constitutional Committee with limited authority to oversee governance temporarily. This initial phase aims to ensure security and stability while allowing Delegate Representatives to register and gain support. Subsequently, over a period of 90 days, power will gradually be transferred to the newly formed governance bodies. The second phase, expected to commence in early 2025, will grant full authority to Delegate Representatives, Stake Pool Operators, and the Constitutional Committee to make crucial decisions regarding proposals and the management of the treasury.
Plutus Scripts for Governance
One of the key features of the Chang upgrade is the enablement of Plutus scripts for governance purposes. This development opens up avenues for advanced voting methods, including the ability to conduct voting within Decentralized Autonomous Organizations. This integration of Plutus scripts marks a significant step towards enhancing the governance capabilities of the Cardano network.
The recent hard fork as part of the Chang upgrade sets the stage for Cardano’s transition to the Voltaire era, where the network will strive towards becoming a self-sustaining ecosystem. While the upgrade was initially scheduled for Aug. 30, it was purposely delayed to allow cryptocurrency exchanges to prepare for the change. Notably, Binance was among the first exchanges to declare their support for the fork.
Despite high anticipation surrounding the Chang upgrade, the price of ADA did not witness a significant boost post-upgrade. In fact, ADA experienced a 3.1% decline over the past 24 hours following the completion of the Chang upgrade. This divergence between expectations and market performance underscores the unpredictable nature of cryptocurrency markets and investor sentiments.
Overall, the completion of the Chang upgrade represents a pivotal moment in Cardano’s journey towards a more decentralized and community-driven governance model. The introduction of on-chain voting, Delegate Representatives, and enhanced smart contract capabilities sets the stage for a more inclusive and participatory ecosystem where ADA holders play an active role in shaping the network’s future. As Cardano continues its evolution towards the Voltaire era, it is essential to monitor how these governance changes will impact the network’s overall growth and adoption.