Cardano is preparing for a major update with the upcoming Chang hard fork, which will revamp its governance structure. Currently valued at around $13 billion, the blockchain expects to see significant changes with this update. Charles Hoskinson, the founder of Cardano, has announced the deployment of the new node version 9.0. This development is a crucial step forward in Cardano’s evolution, signaling the beginning of a new chapter in its journey.

The Chang hard fork is named in honor of the late Phil Chang, a dedicated advocate of Cardano. However, this mandates that 70% of the validators update to the new node version before proceeding with the activation. The threshold is designed to ensure a smooth transition to the new governance model, safeguarding the network’s integrity and security. Moreover, validators play a critical role in the blockchain’s functionality. Their consensus on this upgrade is key to the successful implementation of the hard fork. Hard forks typically bring about significant changes that make new versions incompatible with old ones. As seen with Ethereum’s shift from Proof of Work to Proof of Stake, its operational structure has changed fundamentally.

Governance Evolution and Community Empowerment

In accordance with the Chang hard fork, Cardano will transition governance from the founding organizations—Cardano Foundation, EMURGO, and Input-Output Global—to its broader community. This shift represents a move towards a decentralized governance model akin to decentralized autonomous organizations (DAOs) seen in DeFi protocols.

Additionally, a notable change will be the transformation of ADA, Cardano’s native token, into a governance token. This adjustment will enable ADA holders to vote on blockchain proposals, moving decision-making from centralized entities to the community. Hoskinson emphasized that this shift marks Cardano’s maturity as it progresses towards enhanced decentralization.

Historically, the Cardano Foundation, EMURGO, and Input-Output Global have guided Cardano since its inception in 2017. EMURGO serves as the commercial arm, and Input-Output Global, led by Hoskinson, handles blockchain development. The upcoming hard fork will dilute their control, allowing for greater community involvement in future development.

Preparing for the Hard Fork

In addition, as the hard fork nears. The focus is on ensuring validators upgrade their systems and the community is ready for the governance changes. Achieving the upgrade threshold and preparing the network for this transition is critical for the smooth implementation of the Chang hard fork.

Moreover, the update to node version 9.0 and the upcoming activation of the Chang hard fork are pivotal milestones for Cardano. By granting governance capabilities to ADA holders. Cardano seeks to redefine its ownership structure and adopt a model that is more decentralized and community-focused. This transition underscores the project’s dedication to decentralization and highlights the increasing significance of user involvement in the blockchain sector.

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