Cardano recently completed its Chang upgrade, marking a significant shift towards a decentralized governance system. This upgrade, named after Chinese mathematician Ch’ang Shou, introduces key changes that empower ADA holders to actively participate in the network’s future direction. By enabling on-chain voting and introducing Delegate Representatives, Cardano is moving towards a more democratic decision-making process.
With the completion of the Chang upgrade at block 10764778 on Sep. 1, Cardano is ushering into the ‘Conway ledger era,’ based on the concept of ‘liquid democracy.’ This allows ADA holders to either vote directly on governance issues or delegate their voting power to trusted representatives, known as Delegate Representatives. The network is also establishing new governance bodies like the Constitutional Committee and Stake Pool Operators to oversee governance actions.
The transition to Cardano’s new governance model will occur in two phases. The first phase involves the establishment of an Interim Constitutional Committee with limited authority to oversee governance temporarily. This phase aims to ensure security and stability while dReps register and build support. The second phase is expected to commence in early 2025, fully empowering dReps, Stake Pool Operators, and the Constitutional Committee to make key decisions regarding the network’s future.
One of the key features of the Chang upgrade is the enhancement of smart contract capabilities with PlutusV3. This allows for the use of Plutus scripts for governance, enabling advanced voting methods within Decentralized Autonomous Organizations. These improvements pave the way for a more robust and efficient governance system within the Cardano ecosystem.
The recent hard fork, part of the path to the Voltaire era, signifies Cardano’s journey towards becoming a self-sustaining ecosystem. While the upgrade was highly anticipated, the price of ADA experienced a 3.1% decrease over the past 24 hours. Despite this, the successful completion of the Chang upgrade solidifies Cardano’s position as a pioneering blockchain platform focused on decentralized governance and innovation.
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