Cardano switches to decentralized governance with Chang hardfork 

By completing the Chang upgrade, Cardano has transitioned to a decentralized governance system that gives ADA holders a say in the future direction of the network.

The upgrade, named after Chinese mathematician Ch’ang Shou, was completed on September 1 at block number 10764778.

The upgrade brings with it several key changes, including the decentralization of Cardano’s governance with on-chain voting, the introduction of Delegated Representatives, the enhancement of smart contract capabilities with PlutusV3, and the implementation of a new governance structure and cost model improvements.

Major changes

According to Cardano (ADA), the blockchain is ushering in the “Conway accounting era,” which will be based on what the network calls “liquid democracy.” Essentially, ADA holders now have the option to vote directly on governance issues or delegate their voting powers to trusted representatives known as Delegate Representatives.

Alongside dReps, two other user-led governance bodies, the Constitution Committee and the Stake Pool Operators, will oversee and implement governance actions. Cardano’s three founding organizations, the Cardano Foundation, Input Output Global, and Emurgo, previously held this role.

Cardano’s transition to its new governance model will occur in two phases. The first phase, currently underway, involves the establishment of an Interim Constitutional Committee with limited authority to temporarily oversee governance. This phase focuses on maintaining security and stability while the new governance framework is developed, and allows dReps to register and build support.

After this, over a 90-day period, the network will gradually transfer power to new governing bodies. The second phase, expected to begin in early 2025, will fully empower dReps, Stake Pool Operators, and the Constitutional Committee to make key decisions such as voting on proposals and managing the treasury.

Chang also enables Plutus scripts to be used for governance, enabling support for advanced voting methods such as voting within Decentralized Autonomous Organizations.

The latest hard fork is part of the path to the Voltaire era, which will see Cardano become a self-sustaining ecosystem. The upgrade, initially set for August 30, was delayed to allow cryptocurrency exchanges time to prepare for the change. Binance was one of the first exchanges to support the fork.

While the upgrade was highly anticipated, ADA’s price was unaffected by it, falling by 3.1% in the last 24 hours.