Cardano (ADA) is officially in a new era of governance following the successful implementation of the Chang hard fork last weekend. In a detailed YouTube update on Monday, Cardano’s founder Charles Hoskinson laid out the roadmap for the next critical steps in the blockchain’s journey, emphasizing a new phase of decentralized governance.
According to Hoskinson, Cardano is now in a 90-day “bootstrap phase” where key governance components are being carefully activated. “We are in the bootstrap phase. We will need to be careful about how we bootstrap this fledgling government,” Hoskinson remarked. This phase serves as the transition period leading up to full governance activation, which is expected to come with a subsequent hard fork referred to as “Chang plus one” in December.
The Road To Full Governance
During this bootstrap phase, crucial structures are being put in place. Delegated representatives (DReps) are being registered, and the interim Constitutional Committee is beginning its work. Hoskinson emphasized that by December, full governance capabilities would be functional. This includes activating seven core governance actions such as treasury withdrawals, constitutional updates, and protocol parameter changes.
Notably, Cardano’s governance model will rely on a formal constitution, currently under development. Hoskinson revealed that over 50 workshops are being held worldwide to draft this document, with a constitutional convention set to take place in Argentina in December. “Those delegates are going to form a constitutional convention, and each delegate gets one vote. They will vote on a proposed version one Constitution for Cardano,” Hoskinson explained.
A $600 Million Treasury and New Budgeting Process
One of the most significant developments in Cardano’s new governance structure is the management of its vast treasury, valued at approximately $600 million in ADA. Hoskinson outlined a new annual budgeting process where funds will be allocated to ecosystem needs such as development, marketing, and research. The budget must undergo an approval process, with an open audit and oversight system led by the Intersect group.
“The budget has to get approved. We don’t know the size, we don’t know who’s getting funded, we don’t know the audit and oversight,” Hoskinson said, stressing the need for transparency and community input in this new process.
Shifting Away from IOG’s Role in Governance
Hoskinson also addressed concerns regarding centralization within the Cardano ecosystem. He confirmed that Input Output Global (IOG), the organization he leads, will completely step back from governance. “At this very colorful point, [IOG] will be completely out. We’re not going to have any role, no role. We will not have any DReps, we’re not going to serve on any constitutional committee,” Hoskinson stated.
Instead, a “coalition of DevCos” (developer collectives) will emerge to propose ongoing development plans to the community. This shift is a direct response to calls from within the Cardano community for more decentralization following the Chang hard fork.
Hoskinson concluded by reflecting on the historic importance of the Chang hard fork, calling it “the most significant milestone in the history of Cardano.” He encouraged broad participation in the new governance system, stating, “It’s in your hands now. There are no excuses, it’s all there.”
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As Cardano moves through this 90-day bootstrap phase, the community will be watching closely to see how the decentralized governance model unfolds and what it means for the future of one of the largest blockchain networks in the world.
With over $600 million in treasury assets, a formal constitution on the way, and decentralized control, Cardano’s governance structure is poised to make history in the blockchain space. The next few months will be crucial as Cardano navigates these transformative changes and sets the stage for a new era of decentralized governance.
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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