Cardano recently completed the Chang upgrade, signaling a shift towards a decentralized governance system that empowers ADA holders to have a voice in determining the network’s future direction. This upgrade, named after Chinese mathematician Ch’ang Shou, was finalized at block 10764778 on Sep. 1. The key changes introduced include on-chain voting, Delegate Representatives, enhanced smart contract capabilities with PlutusV3, a new governance structure, and cost model improvements.
With the completion of the Chang upgrade, Cardano is moving into the “Conway ledger era,” characterized by the adoption of “liquid democracy.” This new model allows ADA holders to directly participate in governance decisions or delegate their voting power to trusted representatives known as Delegate Representatives. In addition to dReps, other user-led governance bodies such as the Constitutional Committee and Stake Pool Operators will play a role in overseeing and implementing governance actions.
The transition to Cardano’s new governance model will take place in two phases. The first phase involves the establishment of an Interim Constitutional Committee with limited authority to oversee governance temporarily. This phase focuses on maintaining security and stability while dReps register and gather support. The second phase, set to commence in early 2025, will empower dReps, Stake Pool Operators, and the Constitutional Committee to make key decisions, including voting on proposals and managing the treasury.
The Chang upgrade also enables the use of Plutus scripts for governance, allowing for the implementation of advanced voting methods. This includes support for voting within Decentralized Autonomous Organizations, paving the way for a more sophisticated and inclusive governance process within the Cardano ecosystem.
While the Chang upgrade was highly anticipated within the Cardano community, the price of ADA did not experience a significant boost following the completion of the upgrade. In fact, ADA was down 3.1% over the past 24 hours. However, the long-term implications of the upgrade, particularly in terms of enhancing governance capabilities and setting the stage for the Voltaire era, demonstrate the continued evolution and growth of the Cardano network.
The Chang upgrade represents a pivotal moment in Cardano’s journey towards decentralized governance. By empowering ADA holders to participate in decision-making processes and implementing advanced governance structures, Cardano is positioning itself as a leading blockchain platform focused on community engagement and innovation.
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