ADA token holders can now elect governance representatives and vote on development proposals.
Cardano, the layer-1 blockchain launched by Ethereum’s co-founder, Charles Hoskinson, activated its “Chang” upgrade on Sunday, shifting the ecosystem to decentralized governance. With the transformation, ADA token holders can contribute to decision-making in the ecosystem by electing new governance representatives. Cardano will activate the second phase of the upgrade after 90 days. Despite the upgrade announcement, Cardano’s native coin, ADA, has slumped by 4%.
Cardano Launched Chang Hard Fork
A hard fork is a significant change in a blockchain protocol that shifts from the existing protocol to a new one. It may result in a change in the blockchain’s rules.
As with the Chang Hard Fork, it changes the governance system of the Cardano L1 blockchain from its initial centralized system to a decentralized system that will allow users and token holders to participate actively in controlling the blockchain. The shift has enhanced ADA’s utility, which can now be used to vote on the ecosystem.
Cardano burnt its seven genesis keys, making it impossible for founders to control the network.
Phases of Chang Upgrade
In the just-launched phase of the Chang upgrade, Cardano will be governed by an Interim Constitutional Committee overseeing the blockchain during the transition period, which will last about three months.
After 90 days, Cardano will activate the second phase of its Chang upgrade. Following the activation, the blockchain will fully allow qualified active community members to be a part of its governance bodies.
After that, Cardano will release its long-term vision, the Voltaire Era, which will transform the ecosystem into a self-sustaining blockchain with absolute decentralization.
Cardano Reacts to Upgrade
Cardano Foundation, a non-profit organization developing the Cardano ecosystem, revealed via X that the upgrade is a “major milestone for the Cardano blockchain, ecosystem, and community,” adding that it is “a new era of decentralized governance.”
Similarly, Hoskinson is very positive and expects excellent results from the switch. Expressing his conviction on X, he classified Cardano’s blockchain switch as “one of the greatest technical achievements in human history.” He added, “Nothing can shut it down. Nothing can stop its growth.”
Surprisingly, ADA did not react positively, as its price dropped following the upgrade announcement. According to live price data from CryptocurrenciesToWatch, at press time, the cryptocurrency is down by 3% within the last 24 hours and trades at $0.33 per ADA.
