Cardano Activates Highly Anticipated “Chang” Upgrade, Ushering in a New Era of Decentralized Governance

Cardano, the layer-1 blockchain founded by Ethereum co-founder Charles Hoskinson, has successfully activated its “Chang” upgrade. This milestone marks a pivotal shift in Cardano’s governance structure, empowering ADA token holders to take the reins in shaping the future of the blockchain.

The Chang upgrade, which went live on Sunday, introduces a robust decentralized governance model that enables ADA holders to elect governance representatives and vote on key development proposals. Central to this new structure is CIP-1694, an official “Cardano Improvement Proposal,” which outlines the framework for three new community-led governance bodies: the Constitutional Committee, Delegate Representatives (dReps), and Stake Pool Operators (SPOs).

With the activation of the Chang upgrade, the three founding entities of Cardano—Cardano Foundation, Input Output Global (IOHK), and Emurgo—will no longer hold the keys to trigger chain upgrades or “hard forks.” Instead, this responsibility will now lie with the newly established governance groups, marking a significant step towards decentralization in the Cardano ecosystem.

Decentralization and Regulatory Considerations

Cardano’s transition towards decentralized governance aligns with the broader ethos of the blockchain industry, which increasingly emphasizes community control and autonomy. However, this move is also seen as a strategic way to enhance ADA’s utility and potentially ward off scrutiny from securities regulators.

Despite being ranked as the 28th largest blockchain by DeFiLlama, Cardano has consistently attracted attention within the crypto community, due in part to Hoskinson’s prominent and often outspoken presence. Hoskinson, who co-founded Ethereum in 2014 alongside figures like Vitalik Buterin, left the project early on to create Cardano—a blockchain that has since positioned itself as a rival to Ethereum.

The Chang Hard Fork: A Two-Phase Implementation

Hard forks, which are significant updates that render older versions of a blockchain obsolete, play a crucial role in the evolution of any blockchain. The Chang hard fork is no exception, with its implementation being carefully rolled out in two distinct phases.

The first phase, which is already live, introduces an Interim Constitutional Committee that will temporarily oversee Cardano’s governance. This initial phase is designed with caution, limiting the committee’s power to make substantial changes to the blockchain’s code while the broader governance model is still being established.

The second phase, expected to commence in 90 days, will fully empower the new governance bodies. “Once everyone is onboard and well-informed, they will be ready to actively participate in governance,” said a representative from Cardano. This phase will mark the full transition to a decentralized governance model, in line with Cardano’s long-term vision.

The Dawn of the Voltaire Era

The Chang upgrade is a critical milestone in Cardano’s roadmap, heralding the beginning of the Voltaire era—a phase focused on achieving full decentralization. This era has been a key goal for Cardano since its inception, and the successful activation of the Chang upgrade brings the blockchain one step closer to realizing this vision.

The Voltaire era marks the transition from a system where the founding entities (Cardano Foundation, IOHK, Emurgo) had significant control over the network to one where ADA token holders and community-led governance bodies manage the network. This decentralization aligns with the broader ethos of blockchain technology, emphasizing transparency, inclusivity, and reducing the concentration of power.

The establishment of governance bodies such as the Constitutional Committee, Delegate Representatives (dReps), and Stake Pool Operators (SPOs) means that decisions about Cardano’s future—including updates, improvements, and even funding allocations—will be made by the community. This enhances the resilience and adaptability of the network.

Digital Assets Desk