TL;DR
- Cardano activates the Plomin hard fork, granting ADA holders voting power on important decisions within the network.
- The update met the requirements for stake pool participation and the Interim Constitutional Committee.
- ADA fell by more than 3.4% in the last 24 hours, as the market continues to evaluate the impact of the update.
Cardano moves towards a fully decentralized governance model with the activation of the Plomin hard fork. This change allows ADA holders to make direct decisions about the future of the network through votes on protocol upgrades, treasury management, and other key proposals.
For the hard fork to be approved, the network had to meet three conditions. At least 85% of stake pools updated their nodes to process the new protocol rules. More than 51% of stake pool operators voted in favor of the change, and 67% of the Interim Constitutional Committee determined that the proposal met the established requirements. With these conditions met, the transition to the new governance was secured.
What Will Change in Cardano?
The hard fork introduces several modifications to Cardano’s structure. It enables the seven governance actions defined in CIP-1694, such as presenting new constitutions and votes of no confidence. Additionally, stake pool operators and decentralized representatives (DReps) will be able to participate in decisions within the network. It also establishes that staking reward withdrawals can only be made by accounts that delegate to a DRep.
The Treasury Will Be Managed by ADA Holders
This change has direct implications for the management of the network’s resources. From now on, the Cardano treasury will be managed by ADA holders, who will be able to vote on its use and distribution. The proposal for the hard fork activation was submitted on-chain on December 20, and its implementation will be finalized in the next few hours.
As the network moves towards this new governance model, the market has not reacted positively. ADA has fallen by more than 3.4% in the last 24 hours, trading at $0.92. Additionally, trading volume has decreased considerably. However, the impact of the hard fork on the price may still manifest in the medium term
