TL;DR
- Imminent Update: Cardano’s Chang hard fork, initially scheduled for July, will be carried out soon. More than 70% of the nodes have adopted version 9.1.0.
- New Improvements: Chang will strengthen the network’s decentralization, introduce a new constitution for more autonomous governance, and allow users to submit proposals for a treasury of 1 billion ADA.
- Market Impact: The price of ADA has begun to recover, and the hard fork is expected to increase interest in the cryptocurrency, potentially enhancing its competitiveness in the market.
Cardano (ADA) is about to carry out one of its most important updates with the launch of the Chang hard fork. Initially scheduled for July 2024, it has not yet been implemented. However, some indications suggest it will happen soon.
What Is a Hard Fork?
Broadly speaking, a hard fork is a radical change in a blockchain protocol that affects the validity of blocks and transactions on the decentralized network. It requires all (or a large majority) of nodes and validators to upgrade to a new version of the software.
More than 70% of the network nodes have already adopted the new version 9.1.0, which will allow for the imminent implementation of the update. This is a fundamental update in the evolution of this blockchain, which will strengthen and align its trajectory towards greater decentralization and operational efficiency.
The hard fork will introduce both technical improvements to the network, as well as significant changes to Cardano’s governance. The update is designed to strengthen the network’s decentralization, allowing for more autonomous and resilient coordination among the nodes. Unlike other updates that rely on centralized coordination, Chang will operate in a decentralized manner, ensuring that the network continues to operate with greater independence.
In the weeks leading up to the launch, adoption of the new version by nodes has accelerated, allowing Cardano to reach the 70% threshold necessary to proceed with the hard fork. However, the community is still waiting for some centralized services, such as the Coinbase and Binance exchanges, to update their nodes to support the new features of the update.
Chang: A New Constitution
One of the most notable aspects of the Chang hard fork is the proposal for a new constitution for Cardano, developed by the Intersect organization. This constitution will lay the foundation for a more decentralized governance model. During the first phase of the hard fork, an interim constitutional committee composed of seven members will be introduced, three of whom will be elected by the community. This committee will play a key role in overseeing the transition to the new governance structure.
Second Phase: Greater Participation
The second phase of the Chang hard fork will bring the selection of Representative Delegates (DReps), who will act on behalf of ADA holders in governance decisions. This measure aims to increase community participation in future decisions, transforming the ADA token into a more active governance asset. Additionally, ADA holders will be able to submit proposals for the network’s treasury, which will be distributed based on the votes cast. With an initial treasury of 1 billion ADA, this measure is expected to facilitate greater participation and redistribution of rewards within the community.
However, the transition to a more participatory governance also presents some challenges. The risk of governance attacks by large organizations or whales is a concern, especially regarding the distribution of rewards and influence over the network’s decisions.
Cardano (ADA) Market Performance
The Chang hard fork is expected to revitalize interest in Cardano (ADA) , potentially strengthening Cardano’s position as a competitive blockchain network. The success of the update will be crucial in determining the future of the cryptocurrency, which has faced criticism for its relatively slow growth compared to other blockchain networks.
With the implementation of technical improvements and the introduction of a new governance structure, the Cardano network will make a much-needed leap in its quest to achieve greater efficiency and decentralization, as well as to overcome its limitations and dispel any criticism.
