Cardano, a leading layer-1 blockchain, has taken a significant step towards full decentralization with the activation of its much-anticipated “Chang” upgrade.
Launched in 2017 by Ethereum co-founder Charles Hoskinson, Cardano is now enabling ADA token holders to influence the network’s future by voting on proposals and electing governance representatives.
The New Governance Structure
The Chang upgrade, guided by CIP-1694 (Cardano Improvement Proposal), introduces a new governance framework. This structure includes three community-driven bodies: the Constitutional Committee, Delegate Representatives (dReps), and Stake Pool Operators (SPOs). These groups will now have the authority to manage network upgrades, a role previously held by Cardano’s founding entities—Cardano Foundation, Input Output Global (IOHK), and Emurgo.
This shift aligns Cardano with the blockchain industry’s core principles of decentralization. It also enhances the utility of the ADA token, potentially strengthening its position in the market.
A Move Towards Full Decentralization
Cardano’s transition towards decentralized governance is part of a broader industry trend, as many blockchain projects move away from centralized control. Despite being ranked 28th on DeFiLlama, Cardano consistently draws attention, partly due to Hoskinson’s influence and the platform’s innovative approach.
Hard forks, or significant updates that render older blockchain versions obsolete, are essential for blockchain evolution. The Chang hard fork is particularly crucial, as it unfolds in two phases.
The Two Phases of the Chang Upgrade
The first phase, already live, introduces an Interim Constitutional Committee. This group will temporarily oversee governance, with limited powers to alter the blockchain’s code as the broader governance model develops.
The second phase, expected within 90 days, will fully empower the new governance bodies. This approach ensures that all stakeholders are well-prepared to actively participate in governance.
Entering the Voltaire Era
The Chang upgrade marks a pivotal milestone in Cardano’s journey, ushering in the Voltaire era—a phase focused on achieving full decentralization. This evolution has been a core goal since Cardano’s inception.
Giorgio Zinetti, CTO of the Cardano Foundation, described the upgrade as “the biggest event in Cardano history,” setting it apart from other blockchains. He highlighted that Cardano is now the largest layer-1 blockchain with on-chain governance, surpassing smaller players like Tezos and Polkadot.
