Cardano recently completed its Chang upgrade, signaling a shift towards a decentralized governance system. This upgrade, named after Chinese mathematician Ch’ang Shou, took effect at block 10764778 on Sep. 1. The Chang upgrade brings about significant changes to Cardano’s governance structure, including the introduction of on-chain voting, Delegate Representatives, enhanced smart contract capabilities through PlutusV3, and a new governance framework with cost model improvements.
With the implementation of the Chang upgrade, Cardano is entering what it refers to as the “Conway ledger era” based on the concept of liquid democracy. In this era, ADA holders now have the opportunity to directly vote on governance matters or delegate their voting power to trusted representatives known as Delegate Representatives. These dReps, along with the Constitutional Committee and Stake Pool Operators, will play crucial roles in overseeing and implementing governance decisions, deviating from the previous governance model led by Cardano Foundation, Input Output Global, and Emurgo.
The transition to Cardano’s new governance model will be executed in two distinct phases. The first phase, currently in progress, involves the establishment of an Interim Constitutional Committee with limited powers to ensure governance stability during the development of the new framework. This phase will allow dReps to register and build support. Subsequently, over a 90-day period, power will gradually shift to the new governance bodies. The second phase, set to commence in early 2025, will grant full authority to dReps, Stake Pool Operators, and the Constitutional Committee to make critical decisions, including voting on proposals and managing the network’s treasury.
One of the key aspects enabled by the Chang upgrade is the utilization of Plutus scripts for governance purposes, facilitating the adoption of advanced voting mechanisms. This will enable support for voting within Decentralized Autonomous Organizations, enhancing the network’s governance capabilities significantly. The recent hard fork marks a step towards the Voltaire era, where Cardano aims to become a self-sustaining ecosystem.
Initially scheduled for Aug. 30, the Chang upgrade was delayed to allow cryptocurrency exchanges to prepare for the transition. Notably, Binance was among the first exchanges to announce support for the upgrade. Despite high expectations surrounding the Chang upgrade, the price of ADA did not experience a significant boost and was down by 3.1% over the previous 24 hours.
Overall, the completion of the Chang upgrade signifies a significant milestone in Cardano’s journey towards decentralized governance, paving the way for a more inclusive and participatory decision-making process within the network.