Cardano, the layer-1 blockchain created by Charles Hoskinson, one of the co-founders of Ethereum, has successfully implemented its highly anticipated “Chang” upgrade. This update marks a significant shift towards decentralized governance within the Cardano ecosystem. ADA token holders now have the power to shape the future of Cardano by participating in the election of governance representatives and voting on development proposals.
The new community governance structure, outlined in the Cardano Improvement Proposal (CIP)-1694, establishes three user-led governance bodies: the Constitutional Committee, Delegate Representatives (dReps), and Stake Pool Operators (SPOs). These groups will now be responsible for triggering chain upgrades and hard forks, taking the power away from the Cardano Foundation, IOHK, and Emurgo.
Cardano’s move towards decentralized governance aligns with the broader trend observed in the blockchain industry. By decentralizing the decision-making process, Cardano aims to adhere to the industry’s ethos while potentially increasing the utility of ADA tokens to fend off potential regulatory concerns.
Despite currently being ranked 28th by DeFiLlama, Cardano has consistently attracted attention within the crypto community, mainly due to the colorful personality and outspokenness of Charles Hoskinson. Hoskinson co-founded Ethereum but eventually shifted his focus to building Cardano.
Hard forks are integral to a blockchain’s development and evolution. The Chang hard fork consists of two phases. The first phase, already underway, establishes an Interim Constitutional Committee to oversee Cardano’s governance temporarily. This cautious approach ensures a gradual transition while the rest of the governance model takes shape. The second phase, expected in 90 days, will fully empower the new governance bodies to actively participate in decision-making.
This upgrade represents a significant milestone in Cardano’s roadmap, initiating the Voltaire era, which is focused on achieving full decentralization. According to Giorgio Zinetti, the CTO of the Cardano Foundation, this upgrade sets Cardano apart from other chains, making it the largest layer-1 blockchain with on-chain governance. While other smaller players like Tezos and Polkadot have already implemented on-chain governance, Cardano aims to lead the pack in terms of true decentralization among layer-1 blockchains.