Cardano recently completed its much-anticipated Chang upgrade, transitioning to a decentralized governance system that gives ADA holders the opportunity to influence the network’s future direction. This significant upgrade, named after Chinese mathematician Ch’ang Shou, brings several key changes to Cardano’s ecosystem. One of the most notable changes is the introduction of on-chain voting, allowing ADA holders to directly participate in governance decisions.
With the Chang upgrade, Cardano has introduced Delegate Representatives, which are trusted individuals to whom ADA holders can delegate their voting power. This delegation mechanism enables a more efficient and inclusive governance process, giving a voice to all participants in the network. Additionally, the upgrade enhances smart contract capabilities with PlutusV3, opening up new possibilities for decentralized applications and financial instruments on the Cardano blockchain.
The Chang upgrade also brings about a new governance structure for Cardano, moving away from reliance on the three founding entities to user-led governance bodies such as the Constitutional Committee and Stake Pool Operators. The transition to this new governance model will occur in two phases, starting with the establishment of an Interim Constitutional Committee to oversee governance temporarily. This phase allows Delegate Representatives to register and gain support, preparing them for the gradual transfer of power in the network’s governance actions.
The recent hard fork and implementation of the Chang upgrade are critical milestones on Cardano’s journey towards the Voltaire era. This era aims to make Cardano a self-sustaining ecosystem with advanced governance capabilities, supported by features like Plutus scripts for governance and voting within Decentralized Autonomous Organizations. While the upgrade was initially scheduled for Aug. 30, it was delayed to accommodate cryptocurrency exchanges in preparing for the change.
Despite the high anticipation surrounding the Chang upgrade, the price of ADA did not experience a significant boost, down 3.1% over the past 24 hours following the completion of the upgrade. However, the long-term implications of Cardano’s transition to a decentralized governance system are promising, setting the stage for a more inclusive and community-driven network. As Cardano continues to evolve through its governance upgrades, it is expected to solidify its position as a leading blockchain platform for decentralized applications and smart contracts.
