Cardano Activates ‘Chang’ Upgrade: A New Era of Decentralized Governance

Cardano Activates “Chang” Upgrade: A New Era of Decentralized Governance

Cardano, the innovative layer-1 blockchain that was launched in 2017 by Ethereum co-founder Charles Hoskinson, has officially activated its highly anticipated “Chang” upgrade this past Sunday. This upgrade represents a significant leap toward decentralizing governance within the Cardano ecosystem, a long-planned initiative aimed at empowering its community.

With the implementation of the Chang upgrade, ADA token holders are now granted the ability to influence the future direction of Cardano by electing governance representatives and participating in votes concerning development proposals. The structure of this new community governance is outlined in CIP-1694, which stands for “Cardano Improvement Proposal.” This proposal lays the groundwork for three user-led governance bodies: The Constitutional Committee, Delegate Representatives (dReps), and Stake Pool Operators (SPOs).

In a significant shift, the three foundational entities of Cardano—the Cardano Foundation, Input Output Global (IOHK), and Emurgo—will relinquish their control over triggering chain upgrades or “hard forks.” The responsibility for such actions will now rest with the newly established governance groups, marking a transformative step in the project’s evolution.

Cardano’s move towards a decentralized governance structure aligns it with a growing trend among cryptocurrency projects, aiming to embody the core decentralized ethos of the blockchain industry. This change not only enhances the utility of ADA but may also serve as a strategic measure to mitigate scrutiny from securities regulators.

Despite its current ranking as the 28th largest blockchain according to DeFiLlama, Cardano has maintained a strong presence in the crypto sphere, largely thanks to Hoskinson’s vibrant personality and his habit of outspoken commentary. He was instrumental in creating the Ethereum blockchain in 2014, alongside notable co-founders like Vitalik Buterin, before shifting his focus to establish Cardano as a formidable competitor.

Hard forks—major updates that render previous versions of a blockchain obsolete—are essential for the evolution of any blockchain network. The Chang hard fork is no exception and will be implemented in two distinct phases.

• Phase One: Already live, this phase introduces an Interim Constitutional Committee tasked with temporarily overseeing Cardano’s governance. Caution is paramount in this stage, as the committee’s authority to modify the blockchain’s code is restricted while the broader governance model develops.
• Phase Two: Anticipated to occur within the next 90 days, this phase will empower the new governance bodies fully. According to Giorgio Zinetti, CTO of the Cardano Foundation, “Once everyone is onboard and well-informed, they will be ready to actively participate in governance.”

This upgrade signifies a pivotal moment in Cardano’s roadmap, heralding the commencement of the Voltaire era—an epoch dedicated to achieving full decentralization that has been in the making since the inception of Cardano. Zinetti expressed the significance of this milestone, stating, “I would say it is the biggest event in Cardano history, and it really sets us apart from many other chains.” He further asserted, “I think we are the largest layer-1 blockchain with on-chain governance. While there are smaller players, like Tezos and Polkadot, who have implemented on-chain governance, if there were a leaderboard for real decentralized layer-1s, we would take the top spot.”