Cardano recently completed its highly anticipated Chang upgrade, signaling a monumental shift towards a decentralized governance system that empowers ADA holders to shape the network’s future. Named after the Chinese mathematician Ch’ang Shou, this upgrade introduces a variety of key changes aimed at enhancing Cardano’s governance structure and functionality.
The upgrade paves the way for what Cardano refers to as the “Conway ledger era,” which will operate on the principles of liquid democracy. This model allows ADA holders to participate in governance decisions directly or delegate their voting power to trusted representatives known as Delegate Representatives (dReps). Alongside dReps, two additional user-led governance bodies, the Constitutional Committee and Stake Pool Operators, will play crucial roles in overseeing and implementing governance actions.
The Two-Phase Transition Period
The transition to Cardano’s new governance model will occur in two distinct phases. The first phase is currently underway and involves the establishment of an Interim Constitutional Committee with limited authority to oversee governance temporarily. This initial phase focuses on maintaining security and stability while dReps register and build support. Subsequently, over a 90-day period, power will gradually shift to the new governance bodies.
The second phase of the transition, set to commence in early 2025, will fully empower dReps, Stake Pool Operators, and the Constitutional Committee to make critical decisions regarding the network. These decisions include voting on proposals and managing the treasury. Moreover, the Chang upgrade enables the utilization of Plutus scripts for governance, facilitating advanced voting methods within Decentralized Autonomous Organizations.
Path to the Voltaire Era
The recent hard fork represents a significant milestone on Cardano’s journey towards the Voltaire era, wherein the network aims to establish a self-sustaining ecosystem. Originally scheduled for Aug. 30, the upgrade was delayed to allow cryptocurrency exchanges to prepare for the change, with Binance being among the first to announce support for the fork. Despite the high anticipation surrounding the upgrade, the price of ADA experienced a 3.1% decline over the past 24 hours.
The completion of the Chang upgrade marks a pivotal moment in Cardano’s evolution towards a decentralized governance system. The shift towards liquid democracy and the empowerment of governance bodies signal a new era for the network, promoting transparency, community involvement, and innovation. While challenges may arise during the transition period, the long-term prospects for Cardano appear promising as it continues on its trajectory towards self-sustainability and decentralized decision-making.
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