EMURGO, a founding entity and trading arm of the Cardano blockchain, has revealed five important updates set to be introduced in the upcoming second phase of the Chang hard fork. In a blog post published on October 29, EMURGO outlines developments that will further Cardano’s progress toward fully decentralized governance and improved network functionality.
The first part of Zhang’s steel split was successfully activated on September 1. The first phase implemented crucial changes, such as burning configuration keys, granting voting power to the Interim Constitutional Committee, and including an on-chain hash of the Interim Constitution.
While the release date for Chang Hard Fork Part 2 has not yet been announced, it is… open The updates are poised to further empower the Cardano community and solidify the network’s decentralized governance model. Here are the five major changes expected in the upcoming hard fork:
#1 DRep vote for Cardano
The introduction of Delegate Representative Voting (DRep) is the cornerstone of the second phase of the Chang hard fork. DReps will become one of the three main governing bodies within Cardano’s future governance structure, and will serve as a community-led decision-making mechanism.
“Once fully integrated, DReps will have the authority to vote on proposals and governance actions submitted by the Cardano community (…). This makes their role essential to represent the voice of ADA holders on the network,” says EMURGO.
Registration to become a DRep is currently open. Interested parties are required to make a one-time deposit of 500 ADA to obtain an on-chain DRep certificate, officially appointing them as registered members.
#2 Vote SPO
Stake Pool Operators (SPO) voting is another significant upgrade in Chang’s Part II, giving infrastructure providers a direct role in governance. As primary governing bodies in the Cardano network, Special Purpose Organizations (SPOs) will soon be able to leverage ADA delegated to their groups as voting power.
“Thanks to this update, SPOs can soon leverage ADA delegated to their groups as a voting power,” EMURGO explained, adding: “This means that they, like DReps, can vote to approve or reject governance measures proposed by the community, helping to shape the future of Cardano.” “
The impact of SPOs will depend on the amount of ADA delegated to them, making it essential for SPOs to maintain authorization levels and communicate decisions transparently to commissioners.
#3 Governing procedures
Implementing governance actions is a key feature of Cardano’s move toward full decentralized governance. These actions are suggestions that any member of the Cardano community can submit. With the activation of the second part of the Chang hard fork, ADA holders will be empowered to create and submit these proposals.
“To initiate a proposal, ADA holders must make a small ADA deposit, which is fully refunded after voting ends, regardless of the outcome,” the blog post details. The governing measures will be subject to a vote by both SPOs and DReps. “Through these mechanisms, Cardano truly puts control in the hands of ADA holders, further strengthening its decentralized governance framework,” EMURGO notes.
#4 Cardano Vault Withdrawals
Zhang Part II will introduce a treasury withdrawal system linked to successful governance actions, enabling community-approved initiatives to be funded directly from the Cardano treasury. “This mechanism enables ADA holders to effectively shape how treasury funds promote network growth,” says EMURGO. “Rather than simply providing suggestions, these governing actions become actionable, community-led projects with resources dedicated to implementation.”
#5 Expanded Constitutional Committee
Completing the second part of Zhang would allow for the expansion of the Constitutional Commission. The committee is currently limited to a fixed membership of seven members in the interim phase, and the committee will open its doors to additional members after promotion.
“The expanded committee will welcome individual members as well as representatives of companies, DAOs (decentralized autonomous organizations), NGOs, and other groups within Cardano,” EMURGO reveals. “Each entity can designate a representative to participate in Constitutional Committee processes, adding a potential new layer of inclusivity to Cardano’s decentralized governance framework.”
EMURGO concludes the blog post by emphasizing the collaborative nature of these developments: “With these improvements, Cardano truly puts control in the hands of ADA holders, further strengthening its decentralized governance framework.”
At press time, ADA was trading at $0.3564.
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