Next Cardano Hard Fork Will Bring 5 Key Changes, Reveals Emurgo

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As a seasoned analyst with over two decades of experience in the financial industry, I find myself consistently impressed by Cardano’s relentless pursuit of progress and decentralization. The upcoming Chang hard fork part 2 is yet another testament to their commitment towards building a robust, community-driven ecosystem.

According to a recent blog post by EMURGO, the commercial branch of the Cardano blockchain, they have revealed five major updates that will be implemented during the second phase of the Chang hard fork. These updates aim to accelerate Cardano’s journey towards fully decentralized management and improved network capabilities.

On September 1st, the initial stage of the Chang hard fork was successfully initiated. This phase introduced significant modifications, including the destruction of genesis keys, bestowing voting rights to the Interim Constitutional Committee, and inscribing the hash of the Interim Constitution directly onto the blockchain.

Although a specific launch date for Chang Hard Fork Part 2 is still undisclosed, the anticipated updates are set to strengthen the Cardano community and reinforce its decentralized management structure. Here are the five significant modifications that could occur during the upcoming hard fork:

#1 Cardano’s DRep Voting

In the second stage of the Chang Hard Fork, we’re introducing Delegate Representative (DRep) Voting. As part of the evolving governance structure within Cardano, these DReps will play a crucial role, acting as a tool for making decisions guided by the community.

After complete integration, DRep representatives will be granted the power to cast votes on suggestions and governance decisions proposed by the Cardano community. In essence, they serve as the voice of ADA holders within the network, according to EMURGO.

At the moment, you can sign up to be a Decentralized Representative (DRep)! If you’re keen, all you need to do is make a one-time deposit of 500 ADA. Once this is done, you will receive an on-chain certificate, confirming your status as a registered member.

#2 SPO Voting

In the latest update of Changan version 2, Stake Pool Operators (SPOs) are given a more substantial role in governance by enabling them to vote. As critical decision-makers within the Cardano network, SPOs will soon have the ability to utilize the ADA tokens delegated to their pools as voting influence.

In simple terms, this update allows SPOs (Stake Pool Operators) to utilize the ADA tokens delegated to their pools for voting purposes. This is similar to how DReps (Delegated Representatives) can vote on community-proposed governance actions within Cardano, thereby influencing the platform’s future development.

As an analyst, I find that the impact of Staking Pool Operators (SPOs) is contingent upon the amount of Ada they are entrusted with through delegation. Consequently, it’s essential for SPOs to consistently manage their delegation levels and transparently communicate their decisions to their delegators, ensuring a harmonious and effective staking process.

#3 Governing Actions

“A crucial aspect of Cardano’s transition towards complete decentralized governance is the execution of administrative actions. These actions are ideas that any individual within the Cardano community can suggest. With the arrival of Chang hard fork part 2, ADA holders will gain the ability to develop and propose these ideas.

In order to start a proposal, ADA owners need to put a small amount of ADA into escrow. This deposit is returned after voting concludes, no matter the outcome. The decisions made within the system will be determined by votes from SPOs and DReps. By employing these systems, Cardano empowers ADA holders, making its decentralized governance structure even stronger, as stated by EMURGO.

#4 Cardano Treasury Withdrawals

In the second part of Chang, a system will be presented that ties treasury withdrawals to effective governance activities. This allows for the immediate financing of initiatives endorsed by the community directly from Cardano’s treasury. As EMURGO explains, this mechanism empowers ADA holders to actively influence how treasury funds foster network expansion. Instead of just being recommendations, these governing actions transform into tangible, community-led projects with allocated resources for implementation.

#5 Expanded Constitutional Committee

Finishing Chang Part 2 will enable an increase in the membership of the Constitutional Committee. At present, it only consists of seven members during the transitional period. However, once the upgrade is completed, more individuals will be invited to join.

The extended committee for Cardano is going to invite individuals and delegates from corporations, DAOs (decentralized autonomous organizations), NGOs, and other affiliations. EMURGO discloses that each group can designate a representative to engage in the Constitutional Committee’s activities. This move could introduce an additional level of diversity to Cardano’s decentralized decision-making structure.

In wrapping up the article, EMURGO highlights the cooperative aspect of these advancements: “With these improvements, Cardano empowers ADA holders by giving them greater control, thereby reinforcing its decentralized system of government.

At press time, ADA traded at $0.3564.

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2024-10-31 02:12