- A New Era of Decentralized Governance
- Liquid Democracy: Empowering ADA Holders
- 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 'Voltaire era' and sets the foundation for a fully decentralized governance system.
A New Era of 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.
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 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.
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 transition to full decentralization concludes with the second stage of the Chang hard fork in early 2025, solidifying the community's role in governing the Cardano blockchain.
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