Cardano recently completed its Chang upgrade, a significant milestone that marked the transition to a decentralized governance system. This upgrade, named after Chinese mathematician Ch’ang Shou, introduces key changes that will shape the future direction of the Cardano network.
The Chang upgrade brings decentralization to Cardano’s governance by enabling on-chain voting. ADA holders now have the opportunity to have a say in crucial network decisions. They can either vote directly on governance issues or delegate their voting power to trusted representatives known as Delegate Representatives (dReps).
In addition to on-chain voting, the Chang upgrade enhances Cardano’s smart contract capabilities with PlutusV3. This opens up new possibilities for the network, allowing for the implementation of advanced voting methods such as voting within Decentralized Autonomous Organizations (DAOs).
The upgrade also ushers in a new governance structure, moving away from the control of Cardano’s three founding entities – the Cardano Foundation, Input Output Global, and Emurgo. Instead, the network will be overseen by user-led governance bodies, including Delegate Representatives, the Constitutional Committee, and Stake Pool Operators.
The transition to Cardano’s new governance model will occur in two phases. The first phase involves establishing an Interim Constitutional Committee with limited authority to oversee governance temporarily, focusing on security and stability. In the second phase, power will gradually transition to the new governance bodies, empowering dReps and other stakeholders to make key decisions.
The Road to Voltaire
The Chang upgrade is part of Cardano’s journey towards the Voltaire era, where it aims to become a self-sustaining ecosystem. While the upgrade was initially set for Aug. 30, it was delayed to allow exchanges to prepare for the change. Despite high anticipation, the price of ADA did not see a significant increase immediately following the upgrade.
The completion of the Chang upgrade represents a significant step forward for Cardano as it embraces a decentralized governance system. By allowing ADA holders to participate in decision-making and enhancing the network’s capabilities, Cardano is positioning itself for a sustainable and community-driven future.
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