1. The Voltaire Era: A New Chapter in Decentralized Governance
2. Liquid Democracy: Empowering ADA Holders
3. Full Decentralization in 2025

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.

Full Decentralization in 2025

The second stage of the Chang hard fork, set to occur in early 2025, will complete Cardano's transition to decentralized governance. This phase will introduce the final upgrades needed for full community-led governance, including the formal establishment of DReps as a governance body. DReps will have the authority to register, generate certificates, request ADA delegations, and vote on governance proposals. In addition, SPOs will gain the ability to use their delegated ADA as voting power, further decentralizing decision-making within the network. The Constitutional Committee will also expand its membership beyond the seven members of the interim committee, gaining full veto power over governance actions that contradict the Constitution. 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.

The Chang hard fork not only gives new impetus to Cardano's technical development but also sets the stage for full decentralization by 2025. Technical advancements, such as the use of Plutus scripts in governance, open up new possibilities for voting within Decentralized Autonomous Organizations (DAOs).