Cardano has recently completed its Chang upgrade, signaling a shift towards a decentralized governance system. This upgrade, named after the Chinese mathematician Ch’ang Shou, represents a significant milestone for the ADA network. One of the key changes introduced by the upgrade is the implementation of on-chain voting, allowing ADA holders to actively participate in shaping the future direction of the network.
In addition to on-chain voting, the Chang upgrade introduces Delegate Representatives (dReps) who will act as trusted intermediaries for ADA holders. These dReps, along with the Constitutional Committee and Stake Pool Operators, will play a crucial role in overseeing and implementing governance actions on the network. This decentralized governance structure aims to empower the community and distribute decision-making power more evenly.
The transition to Cardano’s new governance model will occur in two phases. The first phase involves the establishment of an Interim Constitutional Committee to oversee governance temporarily while dReps register and build support. This phase is focused on maintaining security and stability during the transition period. The second phase, expected to begin in early 2025, will fully empower dReps, Stake Pool Operators, and the Constitutional Committee to make critical decisions regarding proposals and treasury management.
One of the key features of the Chang upgrade is the enhanced smart contract capabilities with PlutusV3, enabling the use of Plutus scripts for governance. This will allow for the implementation of advanced voting methods, such as within Decentralized Autonomous Organizations, further expanding the scope of governance possibilities on the Cardano network.
The recent hard fork, part of the path to the Voltaire era, aims to make Cardano a self-sustaining ecosystem. While the upgrade was initially scheduled for Aug. 30, it was delayed to allow cryptocurrency exchanges to prepare for the change. Despite the anticipation surrounding the upgrade, the price of ADA saw a 3.1% decrease in the past 24 hours.
The Cardano Chang upgrade represents a significant step towards a more decentralized and community-driven governance system. With the introduction of on-chain voting, Delegate Representatives, and enhanced smart contract capabilities, Cardano is paving the way for a more inclusive and transparent decision-making process within the network. As the transition to the new governance model progresses, the Cardano community can look forward to a more active role in shaping the future of the ecosystem.
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