- A New Era of Decentralized Governance
- Features of Liquid Democracy
- Technical Improvements and Full Decentralization
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.
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.
Features of Liquid Democracy
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 SPOs will play vital roles in overseeing and implementing governance actions.
Technical Improvements and Full Decentralization
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. The Chang hard fork also brings significant technical advancements, particularly in the area of smart contracts, enabling the use of Plutus scripts in governance and more sophisticated voting methods, including on-chain voting within Decentralized Autonomous Organizations (DAOs).
The second stage of the Chang hard fork will lead Cardano to full decentralization, giving the community control over the treasury and the ability 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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