Cardano has completed its Chang upgrade, marking the switch to a decentralized governance system that allows ADA holders to have a say in the network’s future direction.
Named after Chinese mathematician Ch’ang Shou, the upgrade was completed at block 10764778 on Sep. 1.
The upgrade introduces several key changes, including decentralizing Cardano’s governance by enabling on-chain voting, introducing Delegate Representatives, enhancing smart contract capabilities with PlutusV3, and implementing a new governance structure and cost model improvements.
Key changes
According to Cardano (ADA), the blockchain is ushering into the “Conway ledger era,” which will be based on what the network calls “liquid democracy.” Basically, ADA holders now have the option to either vote directly on governance issues or delegate their voting power to trusted representatives, known as Delegate Representatives.
Besides dReps, two other user-led governance bodies, the Constitutional Committee, and Stake Pool Operators, will oversee and implement governance actions. Cardano’s three founding entities—the Cardano Foundation, Input Output Global, and Emurgo—previously held this role.
The transition to Cardano’s new governance model will happen in two phases. The first phase, currently underway, involves establishing an Interim Constitutional Committee with limited authority to oversee governance temporarily. This phase focuses on maintaining security and stability while the new governance framework is being developed, allowing dReps to register and build support.
Following this, over a period of 90 days, the network will gradually transition power to the new governance bodies. The second phase, expected to begin in early 2025, will fully empower the dReps, Stake Pool Operators, and the Constitutional Committee to make key decisions, such as voting on proposals and managing the treasury.
Chang also enables the use of Plutus scripts for governance, making it possible to support advanced voting methods, such as voting within Decentralized Autonomous Organizations.
The recent hard fork is part of the path to the Voltaire era that will see Cardano become a self-sustaining ecosystem. Initially set for Aug. 30, the upgrade was delayed to allow cryptocurrency exchanges to prepare for the change. Binance was one of the first exchanges to announce support for the fork.
While the upgrade was highly anticipated, the price of ADA did not benefit and was down 3.1% over the past 24 hours.
Read the full article here
