Cardano (ADA) Blockchain Takes Major Step Toward Decentralized Governance with Chang Hard Fork

The Cardano blockchain has taken an immense step toward decentralized governance with the release of the Chang hard fork.

Cardano has taken an important step towards decentralized governance by releasing a hard fork called Chang. At 10:44 pm London time on Sunday, Cardano began handing over control of its $13 billion blockchain to holders of its native token ADA. This is the blockchain’s first step towards a fully decentralized governance structure, with a second upgrade coming later this year to complete the process.

A milestone in decentralization

Cardano CEO Frederik Gregaard emphasized the importance of the shift, saying that the community has long believed in the network’s promise of decentralization. “Every ADA holder can contribute to the evolution of the ecosystem,” Gregaard added, emphasizing the collaborative and innovative spirit of the community.

The implementation of CIP-1694 has brought about a new community governance structure, which includes the establishment of three user-led governance bodies: Constitutional Committee, Representative Representatives (dReps) and Stake Pool Operator (SPO). Essentially, this modification devolves the power to trigger chain upgrades, or “hard forks,” from Cardano’s founding entities, the Cardano Foundation, Input Output Global (IOHK), and Emurgo to a newly formed governance committee.

With the governance model of the Voltaire era, Cardano becomes the first major blockchain to establish a token-based governance system. While many in the community are in favor of the change, decentralized governance comes with its own set of issues. Critics of similar systems such as decentralized autonomous organizations (DAOs) claim that they can suffer from excessive budgets, a lack of checks and balances, and dominance by a small group of powerful stakeholders.

Cardano’s new governance framework attempts to overcome these difficulties by adopting a bicameral system, in which dReps (or community representatives) make decisions jointly with two other legislative bodies. This structure is designed to ensure that all key stakeholders have a say in the governance process, thus ensuring a balance of power throughout the network.

This move demonstrates Cardano’s commitment to decentralization and aims to enhance its role in the ever-expanding blockchain ecosystem.

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