Here’s How Cardano’s Hard Fork Affects Governance and Staking

Cardano’s blockchain has recently undergone a major overhaul with the launch of the "Chang" hard fork, which represents a pivotal move towards enhanced decentralized governance.

This update provides ADA token holders with increased authority over the network’s future developments.

Charles Hoskinson, the founder of Cardano, highlighted the significance of this upgrade, particularly for its impact on governance and decision-making. The hard fork has introduced a new governance structure comprising three primary groups: the Constitutional Committee, Delegated Representatives (dReps), and Staking Pool Operators (SPOs).

Under this new system, the power to propose upgrades or hard forks has shifted from the Cardano founders to the community. ADA holders can now elect representatives and vote on major proposals, establishing Cardano as a leading example of token holder-driven governance.

Hoskinson assured that ADA holders will continue to earn stewardship rewards but now have the option to vote directly, abstain, or delegate their votes to dReps. This change aims to enhance community involvement in governance while maintaining stewardship within the ecosystem.

The Chang hard fork marks the beginning of the Voltaire era for Cardano, which aims for complete decentralization. The new governance model will be gradually implemented over the next 90 days, with the Interim Constitutional Committee managing the transition.

Looking forward, Hoskinson mentioned the anticipated launch of “Cardano 2” in October, which will outline further advancements and strategic directions for the Cardano network, reinforcing its position as a prominent blockchain platform.