Cardano recently completed its Chang upgrade, transitioning to a decentralized governance system that empowers ADA holders to participate in the network’s decision-making process. The upgrade, named after Chinese mathematician Ch’ang Shou, was finalized at block 10764778 on Sep. 1. This milestone introduces significant modifications to Cardano’s governance structure, including on-chain voting, Delegate Representatives, enhanced smart contract capabilities with PlutusV3, and a revised governance model.
The key highlight of the Chang upgrade is the shift towards a decentralized governance model that enables ADA holders to actively engage in shaping the network’s future. Cardano is transitioning into what it refers to as the “Conway ledger era,” which relies on a concept known as “liquid democracy.” This new framework allows ADA holders to directly vote on governance matters or delegate their voting power to appointed Delegate Representatives.
The transition to Cardano’s new governance model will occur in two distinct phases. The initial phase involves the formation of an Interim Constitutional Committee with limited authority to oversee governance temporarily. This interim phase focuses on sustaining security and stability while preparations are made for empowering Delegate Representatives and other governance bodies. Over a 90-day period, the network will gradually transfer decision-making authority to these newly established entities.
In the second phase, set to commence in early 2025, Delegate Representatives, Stake Pool Operators, and the Constitutional Committee will assume full responsibility for key decisions within the Cardano ecosystem. This includes voting on proposals, managing the treasury, and executing governance actions. The transition aims to distribute power more equitably among community stakeholders and usher in a new era of decentralized decision-making.
Implications for Cardano’s Future
The completion of the Chang upgrade signifies a significant step towards Cardano’s evolution into a self-sustaining ecosystem under the forthcoming Voltaire era. The upgrade, initially scheduled for Aug. 30, was postponed to accommodate cryptocurrency exchanges and ensure a smooth transition. Despite high anticipation for the upgrade, the immediate impact on ADA’s price was not substantial, with a minor decrease of 3.1% over the previous 24 hours.
Cardano’s successful implementation of the Chang upgrade marks a pivotal moment in its journey towards decentralized governance and community-driven decision-making. The transition to a new governance model reflects Cardano’s commitment to empowering its users and fostering a more inclusive and transparent ecosystem. With the groundwork laid for the Voltaire era, Cardano is poised to establish itself as a leading platform for decentralized governance within the blockchain space.
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