Cardano’s Chang Upgrade Marks Major Shift to Decentralized Governance

Cardano, the layer-1 blockchain established in 2017 by Ethereum co-founder Charles Hoskinson, has initiated a significant transformation with the activation of its long-awaited “Chang” upgrade. This development represents a crucial step toward decentralized governance, enabling ADA token holders to take an active role in the platform’s future.

With the successful launch of the Chang upgrade, Cardano introduces a new community-driven governance model outlined in CIP-1694, the “Cardano Improvement Proposal.” This proposal establishes three key governance bodies: the Constitutional Committee, Delegate Representatives (dReps), and Stake Pool Operators (SPOs). These groups will now have the authority to manage blockchain upgrades and changes, a responsibility previously held by Cardano’s founding entities—Cardano Foundation, Input Output Global (IOHK), and Emurgo.

This shift aligns Cardano with the broader trend in the crypto industry toward decentralization. By moving decision-making power to the community, Cardano not only strengthens its decentralized ethos but also adds utility to the ADA token, which may help mitigate regulatory scrutiny.

Phased Implementation and the Road Ahead

The Chang hard fork is being implemented in two phases. The first phase, currently in effect, has introduced an Interim Constitutional Committee tasked with overseeing governance during this transitional period. This cautious approach ensures that the committee’s influence is limited while the broader governance framework is being established.

In approximately 90 days, the second phase will fully empower the new governance bodies, marking a significant milestone in Cardano’s journey toward complete decentralization. “Once everyone is onboard and well-informed, they will be ready to actively participate in governance,” said Giorgio Zinetti, CTO of the Cardano Foundation, during an interview with CoinDesk.

This upgrade is a pivotal moment in Cardano’s history, ushering in the Voltaire era—a phase dedicated to achieving full decentralization. “I would say it is the biggest event in Cardano history, and it really makes us different from many other chains,” Zinetti told CoinDesk. He emphasized that Cardano is now the largest layer-1 blockchain with on-chain governance, surpassing other players like Tezos and Polkadot.