As a seasoned crypto investor with a decade of experience under my belt, I must say that the recent Cardano (ADA) Chang upgrade has me intrigued, to say the least. The transition to decentralized governance is a significant step towards maturity for any blockchain project, and Cardano’s move is no exception.
Cardano has finished implementing the Chang update, which signifies the transition to a decentralized management structure where ADA owners can influence the network’s future course.
The update, named after the renowned Chinese mathematician Ch’ang Shou, was finished on September 1st, at block number 10764778.
Cardano CHANG is forked.
— P₳DDY (@PoolShamrock) September 1, 2024
This update brings about significant modifications, such as shifting the management of Cardano towards a decentralized on-chain voting system, incorporating Delegate Representatives, strengthening the capabilities of smart contracts using PlutusV3, and introducing a revised governance structure along with enhancements to the cost model.
Key changes
As per Cardano (ADA), we’re stepping into the “Conway ledger era,” a phase that leverages their concept of “liquid democracy.” In this new setup, ADA holders can either cast their votes directly on governance matters or choose to assign their voting authority to trusted intermediaries, referred to as Delegate Representatives.
Apart from dReps, there are also two other groups responsible for governing the system: the Constitutional Committee and the Stake Pool Operators. In the past, these duties were handled by the three founding organizations of Cardano: the Cardano Foundation, Input Output Global, and Emurgo.
As a crypto investor, I’m excited about the upcoming transition to Cardano’s new governance model. This process will unfold in two stages. The first stage, which we’re already experiencing, is the formation of an Interim Constitutional Committee. This committee, with temporary powers, is tasked with overseeing the governance during this period. The primary focus here is ensuring the security and stability of the platform while the new governance structure is being constructed. During this time, dReps are encouraged to register and rally support for their vision.
After this point, for a duration of approximately 90 days, the control of power will be transferred progressively to the newly appointed governance entities. Commencing around early 2025, the subsequent phase will grant complete authority to dReps, Stake Pool Operators, and the Constitutional Committee, enabling them to exercise essential responsibilities like voting on proposals and managing the treasury.
Additionally, Chang facilitates the application of Plutus scripts for decision-making purposes. This empowers the adoption of sophisticated voting systems, including those used in Decentralized Autonomous Organizations (DAOs).
The latest split in the blockchain is a step towards the Voltaire era, marking Cardano’s transition into an autonomous and self-supporting environment. Originally planned for August 30, the update has been postponed to ensure cryptocurrency platforms can adequately prepare for the transition. Binance was among the early adopters announcing their support for the fork.
Although there was much excitement about the upgrade, unfortunately, the cost of ADA didn’t rise as hoped and instead dropped by 3.1% within the last day.
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2024-09-02 09:44