ADA price reacts negatively after Chang hard fork launch

The Chang hard fork, which Cardano introduced on Sunday, is now live. It essentially gives ADA holders the power to participate in governance and help make crucial decisions. ADA is now effectively a governance token, with anybody who possesses it having a role in electing their representatives and voting on issues that influence the ecosystem in the short and long term.

Chang hard fork was a long-planned move that was initiated in response to the necessity to decentralize the network.

However, the ADA’s price decrease is the primary focus of attention. Certain community members have linked the launch of the Chang hard fork to the decline in token value. The value of ADA has decreased by 2.72% in the past 24 hours, currently trading at $0.3308. It further reflects a drop of 13.92% in the last 7 days and 13.09% in the last 30 days.

It is only right to assume that Chang hard fork happened at a time when the entire crypto market was experiencing a downswing. The value of popular altcoins such as BTC and ETH has plummeted by more than 1.5% in a single day, and meme coins have not fared any better. The segment is currently experiencing significant declines, and there is a possibility that it may continue to decline until any announcements about rate cuts are made.

The plan included an update to decentralized governance. The implementation has aligned with the current scenario. While it may be accurate to link both of them together, it would be wrong to quote that only the shift has hindered the growth of ADA, or the growth of an entire ecosystem for that matter.

Many have defined Chang hard fork as a new era, or a bright new age of community governance. Members have even teased this by using the term chang-ratulations.

Chang hard fork eliminates the trigger point for the Cardano Foundation, Input Output Global (IOHK), and Emurgo. It grants authority to new governance groups that will stand on the pillar of a decentralized structure. Hard forks are associated with significant network upgrades with the objective of making changes that have broader impacts.

Chang hard fork is no different and introduces the Interim Constitutional Committee in the first phase. It will oversee Cardano’s governance for a while before new governance bodies take over. Once its cautious approach has proven successful, the Cardano ecosystem may gradually phase it out. The achievement of the Cardano price target of $0.545 remains uncertain. An alternative option of $0.429 is also being considered.

The second phase of Chang hard form is tentatively scheduled to occur after 90 days. This event will serve as a critical turning point in the development of Cardano.