The Evolution of Governance on the Cardano Network

The Evolution of Governance on the Cardano Network

The Cardano network is on the brink of a significant upgrade with the upcoming Chang hard fork, set to be deployed in the next few days. This upgrade will introduce new features and mark the blockchain’s transition into a community-run network. Originally scheduled for August 27, the launch has been postponed to September 1, 2024, to allow crypto exchanges like Binance to prepare for the changes.

Cardano’s development is divided into five eras: Byron (foundation), Shelley (decentralization), Goguen (smart contracts), Basho (scaling), and Voltaire (governance). The network entered the Voltaire era in May 2024, enabling participants to present and vote on Cardano Improvement Proposals through the staking and delegation process. The Chang hard fork is a key aspect of transitioning into this new era.

The Chang hard fork aims to implement an on-chain distributed governance framework, outlined in CIP-1694. This will hand over the network’s maintenance to the Cardano community, establishing a community-run governance structure. The hard fork consists of two parts, with the first part launching on September 1. This phase will involve creating the Interim Cardano Constitution and the Interim Constitutional Committee to guide the network during the transition.

The second part of the Chang hard fork, scheduled for Q4 2024, will see the network exit the technical bootstrapping phase. This phase will introduce governing bodies such as Delegate Representatives and stake pool operators, enabling community-run treasury withdrawals. These bodies, along with the Constitutional Committee, will have the power to vote on governance proposals and execute treasury withdrawals.

Creating a Sustainable Governance Structure

The implementation of the Chang hard fork marks a significant milestone in Cardano’s evolution towards a decentralized and community-driven network. The introduction of on-chain governance will empower network participants and stakeholders to actively contribute to the decision-making process, ensuring the network’s sustainability and long-term success. As Cardano continues to innovate and expand, its governance model will play a crucial role in shaping the future of the network.

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