On September 1st at 21:44 UTC, the Cardano blockchain underwent the Chang upgrade, a significant step toward enabling the Voltaire governance system.
This upgrade marks the beginning of an exciting new era where every ADA holder can participate in decision-making and contribute to Cardano's future.
Key Highlights of Chang and Voltaire system:
Voltaire Governance: The upgrade implements CIP-1694, setting the stage for a decentralized governance model where ADA holders can vote and make decisions collectively.
Decentralized Power: The new system emphasizes governance "by the many, for the many," aligning with Cardano’s decentralization and community involvement ethos.
Sovereign Wealth Fund: Chang unlocks a $600 million ADA fund to support the community and future developments, showcasing Cardano's commitment to long-term growth and stability.
The upgrade is named after Phil Chang, a leading figure in governance within Cardano before he died in 2022. Under the new model, the entire community can directly participate in setting the direction of the protocol.
So, what does this mean?
A New Governance Model: From now on, all ADA holders can register as representatives (DReps) and vote directly or delegate this right to someone else to vote on their behalf. Additionally, Stake Pool Operators (SPOs) and a temporary Constitutional Committee (ICC) help manage and oversee the entire process.
Transition Phase with Two Major Upgrades (Hard Forks):
New Governance Actions:
It is now possible to change protocol parameters, approve further upgrades (Hard Forks), and perform "information actions" that do not directly impact the blockchain but are essential for discussions and future decisions.
During this transition phase, we all can learn and better understand how to use our voting power. It’s important to remember that this bootstrapping phase will last approximately 90 days, after which we will see the full effects of the new governance.
Cardano is entering a new era, and power is shifting from founding entities like IOG, the Cardano Foundation, and EMURGO to us, the community. This means it’s our chance to take an active role and help shape Cardano's future as a united group working towards a better future.
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