Cardano's Chang Upgrade Marks Major Step Towards Decentralized Governance

Cardano has completed its highly anticipated Chang hard fork, marking a significant step towards decentralized governance. 

This change occurred on September 1, 2024, at 21:44 UTC at block height 10764778, thus marking the start of the “Conway ledger epoch” in Cardano. This update has brought new governance mechanisms on board, such as on-chain participatory governance, whereby ADA holders can either vote or have their vote represented by other individuals.

The Cardano Foundation, in its official X account, called the upgrade a major step forward for the blockchain, its ecosystem, and its community. They are part of what is known as “Voltaire,” which is the third and final stage of Cardano’s roadmap that will lead to the transformation of Cardano into a self-governed network where every ADA holder will have a say on what is happening on the platform.

Today's Chang hard fork marks a major milestone for the Cardano blockchain, ecosystem, and community––fulfilling the promise of a truly self-governing, decentralized network.

Welcome to a new era of decentralized governance: Voltaire. ⚖️ https://t.co/sE0iyRKLg9 pic.twitter.com/dA0JkgYOio

— Cardano Foundation (@Cardano_CF) September 2, 2024

New Governance Structures and Roles Introduced

According to the Cardano Foundation, the Chang upgrade has added several new levels of governance to the network and new positions for stake pool operators. All these are aimed at improving the security and stability of the Cardano network when it is still in its infancy as a decentralized system. Therefore, it is necessary to implement an upgrade that includes the Cardano Improvement Proposal-1694 (CIP-1694), through which those who hold ADA can directly or indirectly influence the platform’s decision-making.

The upgrade also introduces technical changes and governance structures. These include enhancements to smart contracts’ cryptographic and performance features and enabling the implementation of more sophisticated voting systems, including those used in Decentralised Autonomous Organisations (DAOs). These enhancements are expected to roll out within the next 90 days, with plans to build up on decentralization processes in 2025.

ADA Price Declines Despite Major Upgrade

Despite the significance of the Chang hard fork, Cardano’s native cryptocurrency, ADA, did not experience a price boost following the upgrade. In fact, the price of ADA fell by 4.93%, trading at $0.3269 at press time. 

Source: CoinMarketCap

This decline has added to investors’ concerns, especially since ADA has dropped out of the top 10 cryptocurrencies by market capitalization. ADA is down 89% from its all-time high of $3.09, reached three years ago.

The failure to achieve a bullish price action for the upgrade has caused confusion amongst the Cardano community. The technical developments are cause for concern to some investors and traders, who feel that ADA may lose out in the competitive world of cryptocurrencies.

Indeed, the Cardano community has resorted to positivity regarding the Chang upgrade, notwithstanding the lack of a warmly received market. Speaking about the upgrade, Cardano co-founder Charles Hoskinson underscored that the whole atmosphere encompassing the ecosystem and every holder of ADA tokens has a say in the platform’s further evolution.

The Cardano Foundation has stated that the subsequent transition level is expected in 2025 and will include the development of advanced decentralization for the network, with the community taking over the self-governance processes.