Cardano, the third-generation blockchain founded by Charles Hoskinson, is gearing up for a major transformation with the imminent launch of the Chang hard fork. Scheduled for the second quarter of 2024, this hard fork marks Cardano's entry into the Voltaire era, a crucial phase focused on decentralized governance and network sustainability. In this article, we explore the details of this revolutionary update and its potential impact on the Cardano ecosystem.
Chang Hard Fork: What is it?
The Chang hard fork is a significant update to the Cardano blockchain that introduces essential community governance features. This update takes place in two main phases, as detailed in SIP 1694:
- Chang Upgrade Number One: This first phase deploys the initial governance functionalities, launching the technical bootstrapping phase. This includes the implementation of decentralized voting mechanisms and basic governance actions.
- Chang Upgrade Number Two: The second phase extends these mechanisms by introducing full chain governance capabilities, such as delegated representative participation and community cash withdrawals. This phase enables the community to propose and finance new projects, ensuring the sustainability and evolution of the Cardano ecosystem.
Chang's impact on Cardano's governance
Phases of decentralized governance
The implementation of the Chang hard fork marks the beginning of Cardano's decentralized governance, which will take place in several key stages:
- Introduction of delegated representatives (DReps): ADA token holders will be able to delegate their voting rights to elected representatives, who will act on behalf of the community to make important decisions.
- Cardano Constitutional Convention: A global event will bring together governance representatives to draft the first version of the Cardano Constitution. This constitution will lay the foundations for the network's decentralized community governance.
- The vote: At the end of 2024, the community will vote on whether or not to ratify the draft Cardano Constitution. If ratified, this document will guide Cardano's decentralized governance mechanisms and processes.
Why is this important?
The Chang hard fork and the Voltaire era represent a crucial turning point for Cardano. By transferring decision-making power to ADA token holders, Cardano reinforces its commitment to decentralized and inclusive governance. This transition is seen as essential to the long-term sustainability of the Cardano ecosystem, enabling the community to play an active role in the network's future development.
Cardano's vision for the future
The Voltaire era is not just about governance. It also aims to establish a robust treasury system to fund innovative projects within the ecosystem. This cash flow system will be fed by transaction fees and staking rewards, ensuring an ongoing source of funding for community initiatives.
Conclusion
The launch of the Chang hard fork and the entry into the Voltaire era are major milestones for Cardano. This upgrade not only improves blockchain governance, but also paves the way for greater community participation and ecosystem resilience. With these changes, Cardano is well positioned to become one of the leaders in decentralized finance (DeFi) and beyond.
