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Cardano Introduces New Era of Decentralized Governance with Chang Hard Fork

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by Giorgi Kostiuk

a year ago


  1. The Voltaire Era: A New Chapter in Decentralized Governance
  2. Liquid Democracy: Empowering ADA Holders
  3. Technical Advancements

  4. On August 31, 2024, Cardano, the Layer 1 blockchain founded by Ethereum co-founder Charles Hoskinson, executed the first stage of its Chang hard fork at block 10764778. This upgrade marks the start of the “Conway ledger era” and sets the foundation for a fully decentralized governance system.

    The Voltaire Era: A New Chapter in Decentralized Governance

    The Chang hard fork introduces the Voltaire phase, a critical step in Cardano's roadmap toward decentralized governance. Under this new system, every ADA holder now has the right to submit and vote on governance proposals, giving the community direct control over the blockchain's future.

    The transition to decentralized governance will occur in two phases. The first phase, which has just begun, involves establishing an Interim Constitutional Committee (ICC) with limited authority. This committee will oversee the governance process temporarily, ensuring stability and security during the transition.

    Over the next 90 days, the committee will work to maintain continuity while allowing Delegate Representatives (DReps) to register and campaign for support.

    Liquid Democracy: Empowering ADA Holders

    A key feature of the new governance model is the introduction of "liquid democracy." This system allows ADA holders to either vote directly on governance issues or delegate their voting power to trusted representatives, known as DReps. This flexibility reportedly ensures that all community members can participate in the governance process, regardless of their technical expertise or time availability.

    Alongside DReps, the Constitutional Committee and Stake Pool Operators (SPOs) will play vital roles in overseeing and implementing governance actions. Previously, these responsibilities were held by Cardano’s founding entities: the Cardano Foundation, Input Output Global (IOG), and Emurgo.

    Technical Advancements

    The Chang hard fork also brings significant technical advancements, particularly in the area of smart contracts. This upgrade enables the use of Plutus scripts in governance, making it possible to use more sophisticated voting methods, including on-chain voting within Decentralized Autonomous Organizations (DAOs). This transition involves a 90-day period overseen by an Interim Constitutional Committee, which will guide the network through the governance bootstrapping phase.

    The second stage of the Chang hard fork, set to occur in early 2025, will complete Cardano's transition to decentralized governance. At this point, the community will gain control over the Cardano treasury, with the power to propose and approve treasury withdrawals. This marks the final step in Cardano's journey toward becoming a fully decentralized and community-run blockchain network.

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