Cardano’s Chang Hard Fork: A Significant Upgrade for On-Chain Governance

Cardano’s Upcoming “Chang” Hard Fork: A Major Upgrade

Cardano, a prominent blockchain platform founded in 2017 by Charles Hoskinson—who also co-founded Ethereum—is gearing up for its most significant upgrade in two years. This upgrade, known as the “Chang hard fork,” represents a pivotal moment in Cardano’s roadmap. It follows the much-anticipated introduction of smart contract functionality in 2021 and aims to enhance the platform’s structure by enabling users to engage in on-chain governance actively.

Originally scheduled for this week, the hard fork has been postponed to September 1. This delay was announced by Hoskinson to allow certain exchanges, including Binance, ample time to prepare their systems for the changes ahead. “The magic of deadlines is that people who aren’t taking upgrades seriously suddenly say, ‘Damn, we got to get moving,'” Hoskinson noted in a post on X.

Currently, Cardano ranks as the 30th largest blockchain according to DeFiLlama. It is often closely monitored within the cryptocurrency community, partly due to Hoskinson’s dynamic presence and popularity, showcased through his frequent video and podcast appearances. Hoskinson was instrumental in the creation of Ethereum in 2014, alongside co-founder Vitalik Buterin, but departed from the project shortly thereafter.

A hard fork signifies a substantial modification to a blockchain, rendering older versions obsolete. While hard forks can sometimes be contentious, they are often the result of careful planning and coordination. Such upgrades can introduce significant changes for both users and developers, including new features and solutions to existing challenges within the network.

The primary goal of the upcoming upgrade is to equip Cardano with enhanced on-chain governance capabilities. Holders of ADA, Cardano’s native cryptocurrency, will have the opportunity to elect representatives known as Delegate Representatives (or dReps) and vote on improvement proposals, as well as future technical modifications to the blockchain. This development is expected to foster a more democratic approach to governance within the Cardano ecosystem.

According to the Cardano Foundation, the organization dedicated to supporting the blockchain, “This will mark the first step towards a minimum-viable community-run governance structure outlined in CIP-1694, meaning that the Cardano community will be responsible for maintaining and shaping the blockchain network.”

CIP-1694 stands at the forefront of this upgrade and introduces various governing structures within the Cardano ecosystem. These include the establishment of a Constitutional Committee, the roles of dReps, and the participation of Stake Pool Operators (SPOs). Following the implementation of CIP-1694, the governance and evolution of the Cardano blockchain will be placed in the hands of these collaborative groups.

The Chang hard fork is a significant component of the Voltaire Era, which represents the final phase of Cardano’s current development roadmap. The Voltaire era is designed to “provide the final pieces required for the Cardano network to become a self-sustaining system,” according to the foundation.

Read more: Cardano Unfazed by Failed DDoS Attack Targeting Staked ADA