Cardano To Hand Its Treasury To Community

Charles Hoskinson has clarified the governance actions within the Cardano blockchain, stating that the ADA community would have full control of the treasury following the deployment of decentralized representatives (dReps), rather than waiting for a final constitution to be established. 

The event is expected to take place about 90 days after the Chang hard fork, a major Cardano upgrade.

According to TapTools, an analytics platform, Cardano is the eighth biggest treasury in crypto, with over $680M.

Cardano has the 8th biggest treasury in the industry, and it's being handed over to the community.#ChangHardFork @Cardano @IOHK_Charles pic.twitter.com/jXgquu8QsV

— TapTools (@TapTools) June 14, 2024

The Cardano ecosystem has continuously enhanced its governance mechanism to promote decentralization and community involvement.

The publication of CIP-1694 in November 2022 marked a new era for the network. This document introduces a governance structure that brings decision-making on-chain, allowing all ADA holders to participate in the blockchain’s governance.

Cardano Stepping Up Decentralization Levels

According to Hoskinson, three key governing bodies play roles in securing consent on community-submitted proposals, also known as governance actions. These bodies include the Delegated Representatives (DReps), the Constitutional Committee (CC), and the Stake Pool Operators (SPOs). 

The interim period involves both on-chain technical features and off-chain actions occurring between the Chang Initial Update and the constitution’s on-chain ratification.

During the Bootstrapping Period, DRep mainnet registers prepare for the final governance features deployed in step 2 of the Chang Upgrade. This period is designed to provide stability, allowing new on-chain governance roles (DReps, Constitutional Committee members, and SPOs) to undergo their bootstrapping process and enabling the community to adapt to the CIP-1694 governance mechanisms.

It’s the most significant milestone in the history of Cardano and for the industry as a whole. Cardano will be a decentralized civilization spanning the entire world with millions of residents. We’ll have the most advanced blockchain governance system, annual budgets, a treasury, and the wisdom of our entire community to guide us,” Hoskinson said.