Cardano Will Switch To ‘Full Decentralized Governance’ After Incoming Plomin Hard Fork, Giving ADA Holders Voting Power

Cardano is set to activate the Plomin hard fork later Wednesday, ushering in a new era of decentralization for the blockchain network.

This major upgrade, confirmed by the Cardano Foundation, will grant ADA holders direct voting power over key network decisions, including parameter adjustments, treasury withdrawals, and hard fork initiations.

The Cardano blockchain will transition to a decentralized governance structure after the Plomin hard fork takes effect. 

This hard fork introduces multiple critical changes to Cardano’s governance and functionality. It enables all seven governance actions outlined in the Cardano Improvement Proposal CIP-1694, including treasury withdrawals, new constitution proposals, and votes of no confidence. 

Moreover, it activates decentralized representative (DRep) and stake pool operator (SPO) voting on applicable governance actions.

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“A Milestone In Blockchain Governance”

The Cardano Foundation posited in a Jan. 29 post on X:

“The Plomin hard fork takes effect, marking the transition to full decentralized governance. $ADA holders gain real voting power — on parameter changes, treasury withdrawals, hard forks, and the blockchain’s future, a milestone in blockchain governance.”

https://twitter.com/Cardano_CF/status/1884549197552115829

The Plomin hard fork was officially approved last week for enactment after meeting all three necessary thresholds for such a transformation during the network’s interim governance period. 

The results saw that at least 85% of stake pools had elevated to a Cardano node version capable of processing the rules associated with the new protocol version. In addition, more than 51% of stake pool operators voted in favor of the upgrade, and over 66% of the Interim Constitutional Committee found that the hard fork was constitutional, setting the stage for Cardano’s transition to decentralized governance.

ADA was trading hands for $0.9465 as of press time, up 3.3% on the day, according to CoinGecko data. The token is up over 76% over the past year, outshining rival Ether’s 34% yearly growth. A powerful move above the $1 threshold could pave the way for further gains toward its current all-time high of $3.09.