EMURGO, a founding entity and the commercial arm of the Cardano blockchain, has unveiled a series of transformative updates in the forthcoming second phase of the Chang hard fork. As detailed in their blog post dated October 29, these advancements are set to propel Cardano towards achieving full decentralized governance and improved network efficiency.
The initial phase of the Chang hard fork was successfully activated on September 1, introducing pivotal changes such as the burning of genesis keys and the establishment of voting rights for the Interim Constitutional Committee. This phase also embedded the hash of the Interim Constitution on-chain, marking significant strides in governance.
Although the activation date for Chang Hard Fork Part 2 remains pending, the anticipated updates are designed to empower the Cardano community and fortify its decentralized governance framework. Below, we explore the five crucial changes expected in the impending hard fork:
Cardano’s DRep Voting
The introduction of Delegate Representative (DRep) Voting stands as a cornerstone of the second phase of the Chang Hard Fork. DReps will emerge as one of the three primary governing bodies within Cardano’s evolving governance structure, providing a platform for community-driven decision-making.
EMURGO highlights, “Once fully integrated, DReps will have the authority to vote on proposals and governance actions submitted by the Cardano community. This makes their role essential for representing the voice of ADA holders on the network.”
Individuals interested in becoming a DRep can register by making a one-time deposit of 500 ADA to secure an on-chain DRep certificate, formally recognizing them as registered members.
SPO Voting
Stake Pool Operator (SPO) voting is another major enhancement in Chang part 2, granting infrastructure providers a direct role in governance. As pivotal governing bodies on the Cardano network, SPOs will soon be able to wield the ADA delegated to their pools as voting power.
EMURGO elaborates, “With this update, SPOs can soon leverage the ADA delegated to their pools as voting power. This means they, like DReps, can vote to approve or reject community-proposed governance actions, helping shape Cardano’s future.”
The influence of SPOs is linked to the volume of ADA delegated to them, emphasizing the importance of maintaining delegation levels and transparently communicating decisions to delegators.
Governing Actions
The implementation of governing actions is crucial in Cardano’s journey towards full decentralized governance. These actions represent proposals that any Cardano community member can submit. With the activation of Chang hard fork part 2, ADA holders will gain the ability to create and submit these proposals.
The blog post explains, “To initiate a proposal, ADA holders must make a small ADA deposit, which is fully refunded after voting ends, regardless of the result.” Governing actions will undergo voting by both SPOs and DReps. “Through these mechanisms, Cardano is truly placing control in the hands of ADA holders, further strengthening its decentralized governance framework,” EMURGO notes.
Cardano Treasury Withdrawals
Chang part 2 will introduce a treasury withdrawal system linked to successful governing actions, facilitating the funding of community-endorsed initiatives directly from Cardano’s treasury. “This mechanism enables ADA holders to actively shape how treasury funds promote network growth,” EMURGO states. “Rather than merely serving as suggestions, these governing actions become actionable, community-driven projects with dedicated resources for execution.”
Expanded Constitutional Committee
The completion of Chang part 2 will pave the way for the expansion of the Constitutional Committee. Currently restricted to a fixed membership of seven during the interim phase, the committee will open its doors to additional members following the upgrade.
EMURGO reveals, “The expanded committee will welcome individual members as well as representatives from companies, DAOs (decentralized autonomous organizations), NGOs, and other groups within Cardano. Each entity can appoint a representative to participate in the Constitutional Committee’s operations, adding a potential new layer of inclusivity to Cardano’s decentralized governance framework.”
EMURGO concludes the blog post by emphasizing the collaborative nature of these developments: “Through these enhancements, Cardano is truly placing control in the hands of ADA holders, further strengthening its decentralized governance framework.”
As of the latest update, ADA is trading at $0.3564.
