The Cardano network has reached a significant milestone in its quest for complete decentralization with the successful activation of the Chang hard fork on Sunday, September 1. This pivotal upgrade propels Cardano into the Voltaire era, marking a transformative shift in the network’s governance and functionality.
A New Dawn For Cardano – The Voltaire Era
Cardano’s transition to the Voltaire era was set in motion with the Chang hard fork, which went live at 21:45 UTC. This upgrade introduces a decentralized, community-driven governance system, allowing ADA holders to actively participate in the decision-making processes of the network. In a historic move, Cardano has eliminated the need for a large ADA stake to influence governance, granting equal voting rights to all ADA holders.
Decentralized Representation Takes Center Stage
One of the key features of the Chang upgrade is the introduction of Decentralized Representatives (DReps). Just nine hours after the activation, Cardano’s ecosystem saw 45 DReps come into play, including 43 registered DReps and two Auto DReps. These representatives will play a crucial role in voting on major decisions such as constitutional amendments and the implementation of future hard forks.
The DReps, along with the Constitutional Committee (CC) and Stake Pool Operators (SPOs), will lead Cardano’s governance. Initially, the CC will oversee the network until the second phase of the upgrade is completed, expected in the next 89 days. At that point, full governance power will transition to the DReps and SPOs, further decentralizing the network’s control.
In a symbolic and practical step towards decentralization, Cardano has phased out its genesis keys. The seven keys from the Shelley phase have been burned, signifying the end of the founders’ control over the network. This move is a testament to Cardano’s commitment to a decentralized future, ensuring that no single entity has undue influence over the network’s operations.
Despite the landmark upgrade and the enthusiasm surrounding the new governance model, Cardano’s native token, ADA, has experienced a flat response. The token fell over 4% in the past 24 hours and has seen a decline of more than 13% over the past week. The downturn in ADA’s price is part of a broader market trend that has seen many cryptocurrencies struggling amidst a general market correction.
The end of August saw ADA lose 15% of its value, reflecting the ongoing challenges faced by the cryptocurrency market as a whole. While the Chang upgrade represents a significant advancement for Cardano, the immediate market response highlights the volatile nature of the crypto space.
Looking Ahead
The Chang upgrade and the ushering in of the Voltaire era represent a significant leap forward for Cardano’s vision of a fully decentralized network. As the ecosystem continues to evolve, the focus will shift to how well the new governance system operates and how it impacts ADA’s market performance in the coming months. For now, the Cardano community and stakeholders will be keenly watching as this new chapter unfolds, with hopes for a more resilient and community-driven network.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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