Cardano (ADA) has officially launched its Chang hard fork, establishing a shift towards decentralized governance. ADA holders can now elect governance representatives and vote on crucial development proposals.
The hard fork introduces a new governance structure through CIP-1694, featuring the Constitutional Committee, Delegate Representatives (dReps), and Stake Pool Operators (SPOs).
Previously managed by Cardano's founding entities, upgrades and forks are now the responsibility of new governance groups. This change marks Cardano as one of the first major blockchains to implement a token-based governance system, leading into the 'era of Voltaire.'
However, challenges such as bloated budgets and concentrated power in DAOs are potential pitfalls of this decentralization. Furthermore, the new model may complicate regulatory oversight by bodies like the SEC.
Despite the milestone, ADA's market response was underwhelming, decreasing by 3.72%. However, Charles Hoskinson plans to introduce 'Cardano 2,' focusing on decentralized social networks and AI integrations to regain the blockchain's strong position.
