- Cardano activated the highly anticipated Chang hard fork on September 01, ushering in the Voltaire era.
- This upgrade introduces on-chain governance, empowering ADA holders to participate directly in shaping the network’s future.
Cardano, a layer one blockchain, successfully activated the highly awaited Chang Hard fork on September 01, which will usher in the Volaitre Era. This upgrade is a step towards full decentralization and on-chain governance.
According to Frederik Gregaard, CEO of the Cardano Foundation, “Every ADA holder can contribute to the ecosystem’s evolution. The community will collaborate, innovate, and govern by mutual agreement.”
Displacing power from the founder Charles Hoskinson, Input Output Global, along with the Cardano Foundation and EMURGO, for the first time since 2017, the Cardano community can elect governance representatives and vote on development proposals.
At the heart of transitioning into a fully decentralized Autonomous Organization (DAO) is the CIP-1694. This model, named after the birth year of the French writer and free-speech advocate, outlines the new governance structure. As we earlier reported, CIP-1694 outlines three user-led governance bodies, including the Constitutional Committee, Delegate Representatives (dReps), and Stake Pool Operators (SPOs).
Previously, Cardano’s founding entities included the Cardano Foundation, Input Output Global (IOHK), and Emurgo. The aforementioned entities called the shots on matters concerning chain upgrades and Hard Forks. With the Chang Upgrade, there has been a governance overhaul, placing power in the hands of the new governance bodies.
Cardano’s shift to self-governance is being watched by other tokens with envy. Also, shifting into a DAO will potentially ward off regulators by enhancing the token’s role within the ecosystem. This sentiment was supercharged by Florian Volery, co-founder of Liqwid Labs who stated:
Without a central authority controlling the network, it is much harder for governments or corporations to censor information or transactions,
The transition towards Cardano’s self-governance campaign will happen in two phases. Phase one, which is already underway entails an Interim Constitutional Committee being formed to temporarily oversee governance. Its primary role will to ensure network security and stability while the ecosystem transitions into the new governance framework.
In the second phase, which is expected to occur in the next 90 days, the network will gradually transfer power to the newly established governance bodies. The second phase, anticipated to start in early 2025, will grant full authority to dReps, Stake Pool Operators, and the Constitutional Committee to make key decisions. This includes voting on proposals and managing the network’s treasury.
This upgrade carries considerable importance in Cardano’s journey, marking the beginning of the Voltaire era, a phase that focuses on achieving full decentralization. “I would say it is the biggest event in Cardano history, and it really makes us different from many other chains,” Zinetti told a leading news outlet.
At the time of writing, ADA is swapping hands with $0.3293, marking a 3.95% decline in the last 24 hours.
