Cardano recently completed its Chang upgrade, signaling a significant shift towards a decentralized governance system that puts power in the hands of ADA holders. This move, named after the Chinese mathematician Ch’ang Shou, took place at block 10764778 on Sep. 1. The upgrade brings forth a range of changes, including the introduction of on-chain voting, Delegate Representatives, smart contract enhancements with PlutusV3, and a revamped governance structure.
With the completion of the Chang upgrade, Cardano is entering what they call the “Conway ledger era,” characterized by what they refer to as “liquid democracy.” In this new system, ADA holders have the choice to either directly participate in governance decisions or delegate their voting authority to trusted representatives called Delegate Representatives. Alongside dReps, other governing bodies like the Constitutional Committee and Stake Pool Operators will be responsible for overseeing and implementing governance actions.
The transition to Cardano’s new governance model will occur in two distinct phases. The first phase, currently in progress, involves the establishment of an Interim Constitutional Committee with limited powers to oversee governance temporarily. This phase aims to maintain security and stability during the development of the new governance framework, allowing dReps to register and garner support. Following this, over a span of 90 days, power will gradually shift to the new governance entities.
The second phase, set to commence in early 2025, will empower dReps, Stake Pool Operators, and the Constitutional Committee to make crucial decisions, including voting on proposals and managing the treasury. The Chang upgrade also facilitates the use of Plutus scripts for governance, enabling more advanced voting mechanisms such as within Decentralized Autonomous Organizations.
The recent hard fork, part of the journey towards the Voltaire era, aims to establish Cardano as a self-sustaining ecosystem. Originally planned for Aug. 30, the upgrade faced a slight delay to allow cryptocurrency exchanges to adapt to the changes. Binance was among the first exchanges to pledge support for the fork. Despite high anticipation for the upgrade, the price of ADA saw a decline of 3.1% over the past 24 hours.
The completion of the Chang upgrade marks a pivotal moment for Cardano, ushering in a new era of decentralized governance and empowering ADA holders to shape the network’s future direction. This transition signifies a significant step towards a more inclusive and community-driven blockchain ecosystem.
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