- Cardano’s Chang Hard Fork is a two-phase upgrade that enhances network governance and functionality.
- Phase 1 introduced a governing committee to strengthen decentralized decision-making, while Phase 2.
The Cardano blockchain network is gearing up for a significant two-phase upgrade known as the Chang Hard Fork, promising to transform its governance structure and functionality. The first phase kicked off on September 1, while the second one is expected to begin in November 2024; this second phase marks a significant step towards the decentralisation of Cardano’s governance model, also referred to as the Voltaire era. This is anticipated to build on the capacity of Cardano’s network to support a lasting path for growth and interaction.
Phase 1
The first phase of the Chang Hard Fork included several crucial enhancements meant to bolster Cardano’s governance model. This update also includes enhancing the role of the Interim Constitutional Committee, which is crucial for the Cardano project’s goal of moving toward decentralization of governance.
This committee will be responsible for early governance activities as the community adapts to the change and will set the groundwork for the governance of Cardano. The changes implemented during the first phase pave the way for more people to be involved in the decision-making process, which is a hallmark of the subsequent phases of Cardano. The second phase of changes is built on the improved governance structures that are set to come into effect in the near future.
Phase 2
The second phase, expected to start in November, will include five significant on-chain governance actions which will enable the community to be an active part of the decisions made in the Cardano network. One of the main changes is the implementation of the Delegate Representative (DRep) voting. DReps will be the key players in the governance of Cardano, will be allowed to cast a vote for the community and will also act as an interface between the single stakeholders and the network proposal.
Stake Pool Operator (SPO) voting will also be crucial for the Chang 2 upgrade as well. SPOs will be able to exert greater influence through the stake given to their pools to act as voices for their delegators in the governance. This modification enhances Cardano’s decentralized model since the network operators will have a direct say in the development of the platform.
With Chang 2, one of the key changes was the introduction of the proposal system that enables any member of the Cardano community to propose actions that can be taken by the governance with a stakeholding of ADA. This model is intended to involve a larger number of participants in the community as all the proposals are to be put to a vote by DReps and SPOs to ensure that the proposal aligns with the Cardano ecosystem. Following the vote, the deposit is refunded, making the process accessible while reducing spam proposals.
Also, the Treasury Withdrawal system is an example of positive network funding strategy. Once a governance action is approved, it will draw its resources from the Cardano treasury to support the continuity of important initiatives. This initiative allows the community to decide on the right use of treasury funds and create a network that matches its values and goals.
