Cardano, a layer 1 blockchain founded by Ethereum co-founder Charles Hoskinson, has officially undergone the first phase of the Chang hard fork, becoming the first major blockchain to transition from a centralized governance structure to a token-based decentralized governance system.
Over the next 90 days, Cardano will fully transition to a community-led governance model overseen by a provisional committee. At the end of the 90 days, the second phase of the Chang hard fork will be activated, handing over full authority to a new governance body, including a constitutional committee, delegate representatives, and staking pool operators.
According to Cardano’s description, “The goal of the first phase is to ensure security and continuity during the governance bootstrapping phase, allowing delegates to register and campaign for their mandates, while developing and ratifying the final constitution by early 2025.”
Cardano was once a top 5 cryptocurrency by market cap, but recent trends have not been very favorable for the token. Last month, it dropped out of the top 10 as TRON’s TRX token and Telegram’s Toncoin grew.
“When I look back at where we started as an ecosystem, it was just a thought… We’ve grown tremendously over the years. There have been ups and downs, there have been a lot of disappointments, but here we are,” Hoskinson said in a video posted to X. “Now here we are today… A day where the entire ecosystem, the community, all ADA holders stand shoulder to shoulder on equal footing and everyone has a say in not only the future of this protocol, but what it can do for everyone around the world.”
According to The Block’s ADA price page, the price of Cardano’s native ADA token has fallen by around 4% over the last 24 hours.
Disclaimer: The Block is an independent media outlet providing news, research and data. As of November 2023, Foresight Ventures is the largest investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, influential and timely information on the cryptocurrency industry. Current financial disclosures are as follows:
© 2024 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.