Cardano (ADA), the proof-of-stake blockchain platform, is inching closer to a pivotal moment in its development with the highly anticipated Chang hard fork on the horizon. This upgrade promises to usher in a new era for Cardano, empowering its community and potentially influencing the price of its native token, ADA.
The Road to Decentralization: The Voltaire Era
Chang represents the first step into the Voltaire era, a critical phase of Cardano’s roadmap focused on achieving complete decentralization. Currently, the development firm Input Output Global (IOG) holds significant control over the network. The Chang hard fork aims to shift this power dynamic, granting ADA holders a say in the future direction of Cardano.
This transition will occur in two phases. The first will see the introduction of an interim version of the Cardano constitution, overseen by a newly formed Constitutional Committee (CC). Notably, the community will have a voice within this committee, with three of the seven initial members representing ADA holders.
The second phase will mark a more significant shift towards full decentralization. It will introduce delegated representatives (dReps), allowing ADA holders to delegate their voting rights to individuals who align with their interests. This system empowers the community to actively participate in shaping the network’s future.
Is a Price Rally Incoming?
The impending Chang hard fork has generated considerable excitement within the Cardano community. With increased decentralization and community involvement, Cardano could solidify its position as a leading blockchain platform. This positive sentiment could translate into a price increase for ADA.
However, some caution is warranted. As of July 8th, 2024, only 63% of stake pool operators (SPOs) had upgraded to the necessary node version. For the hard fork to activate, this number needs to reach at least 70%. While progress is evident, there’s still a hurdle to overcome.
Furthermore, ADA’s current price performance paints a mixed picture. The token has experienced a recent decline and remains outside the top 10 cryptocurrencies by market capitalization. While the Chang hard fork could act as a catalyst for a price surge, market forces and broader economic conditions will also play a role.
A Look Forward
The Chang hard fork represents a significant milestone for Cardano. By empowering its community and introducing decentralized governance, the platform paves the way for a more democratic and sustainable future. Whether this translates to a price rally for ADA remains to be seen, but the upcoming upgrade undeniably presents an exciting chapter for Cardano and its supporters.