Cardano’s ambitious ‘Chang’ hard fork, which went live on Sunday, has marked a significant shift for the Layer-1 blockchain towards decentralized governance. The upgrade, which was successfully executed, empowers ADA token holders to actively participate in shaping the future of the Cardano network.
Romain Pellerin, the CTO of Input Output Global (IOG), the company behind Cardano’s development, announced the successful implementation on X, stating that ADA holders now possess the ‘power to decide the fate of the protocol on-chain.’ Charles Hoskinson, the founder of Cardano and co-founder of Ethereum, called the upgrade a ‘new chapter’ for the blockchain.
The ‘Chang’ hard fork introduces a new governance structure, allowing ADA holders to elect representatives, known as Delegate Representatives (dReps), who will then vote on proposals for improvements and technical modifications to the blockchain. This new governance framework is based on CIP-1694, a Cardano Improvement Proposal that outlines various governance structures, including the Constitutional Committee, dReps, and Stake Pool Operators (SPOs).
For those unfamiliar, a hard fork represents a fundamental change in a blockchain’s programming, making it incompatible with older versions. The ‘Chang’ upgrade is part of the Voltaire Era, the final phase in Cardano’s current roadmap, aiming to establish a self-sustaining system.
The upgrade is expected to add more utility to the ADA token, which has faced a challenging year in terms of price performance. Currently ranked as the 11th largest cryptocurrency, ADA has experienced a 44% decline year-to-date, in contrast to Bitcoin’s 30% gains and Ethereum’s 7.22% rise.
Despite the hard fork’s implementation, ADA’s price did not immediately react positively. It traded 3.57% lower than its price 24 hours earlier, according to data from Benzinga Pro. While the immediate impact on price is yet to be seen, the ‘Chang’ hard fork represents a significant milestone in Cardano’s journey towards decentralized governance, empowering its community to actively participate in shaping the future of the network.
