Cardano Launches First Phase of Hard Fork Chang, Transitioning towards Full Decentralized Governance
The Cardano network, one of the oldest layer-one blockchains, recently achieved a critical milestone by launching the first phase of its hard fork Chang.
This change marks a significant transition towards fully decentralized governance, a first among major blockchains. Founded by Ethereum co-founder Charles Hoskinson, Cardano is entering what is known as the ‘Voltaire era’, its final phase of development.
From Centralization to Community Governance
The launch of the hard fork Chang represents the culmination of several years of development. Previously, Cardano governance was centralized, with decision-making controlled primarily by a central entity. However, with this update, the blockchain is gradually transferring governance power to its ADA token holders, the native cryptocurrency of Cardano. This process will take place over a period of 90 days, during which an interim committee will oversee the transition.
During this period, ADA holders will be able to actively engage in governance by electing delegated representatives and participating in the ratification of a final constitution set for early 2025. This governance model includes a constitutional committee, delegated representatives, and staking pool operators, each playing a key role in ecosystem management.
A Clear Objective: Security and Continuity
The objective of this first stage is to ensure security and continuity during the start-up phase of governance, allowing delegated representatives to register and campaign for delegation, while developing and ratifying a final constitution by early 2025.
This cautious approach aims to minimize risks while encouraging broad community participation, which is essential for the long-term success of Cardano’s decentralized governance, according to its team.
Challenges and Opportunities for ADA
Although Cardano has experienced ups and downs over the years, its ADA token has recently faced less favorable market dynamics. Once ranked among the top five cryptocurrencies in terms of market capitalization, ADA has recently fallen out of the top 10, surpassed by projects like TRON’s TRX and Telegram’s Toncoin.
Despite these challenges, Charles Hoskinson remains optimistic. In a video posted on the social network X, he stated, ‘When I think back to our beginnings, it was just an idea… we have grown tremendously over the years. There have been highs and lows, many disappointments, but now we are here.’ He also emphasized that this day marked a historic moment where ‘the entire ecosystem, the community, every ADA holder stands side by side as equals, and everyone has a say in the future, not only of this protocol, but of what this protocol can achieve for everyone in the world.’
Towards Full Decentralized Governance
At the end of the 90-day transition period, the second phase of the hard fork Chang will be activated, completely transferring power to the new governance structures. This phase will be crucial in testing the resilience of the new system and seeing how the ADA community embraces its new responsibilities.
