The Cardano blockchain is set to undergo another major upgrade that would put the proof of stake (PoS) smart contracts-enabled platform on track to achieve a fully decentralized network governance.
Labeled Chang hard fork, the upgrade is expected to occur on 1 September 2024 after postponement from the initial date, August 27, 2024. Charles Hoskinson, the founder of Cardano and Input Output Global (IOG) CEO made this known last week, stating that the postponement became necessary as several crypto exchanges failed “to put their houses in order.”
Implications of Chang hard fork on Cardano network
Chang hard fork was first introduced in November 2022 by Hoskinson and four other ecosystem contributors in Cardano Improvement Proposal (CIP) 1694. According to Hoskinson, the hard fork will mark a significant milestone in the Cardano ecosystem, as it is the first step to introducing a new governance framework code-named the “Age of Voltaire” on Cardano’s roadmap.
For the uninitiated, the Voltaire era is a phase in the development of Cardano where significant changes would be introduced into the network’s governance model to ensure a fully decentralized blockchain.
In essence, the upcoming Chang hard fork will enable any Cardano user to submit a governance action in the project community. However, every governance action must be approved by at least two governance bodies in the Cardano ecosystem using their on-chain votes.
Notably, three distinct governance entities, including a constitutional committee, a group of delegated representatives (DReps) and the stake pool operators (SPOs) would be introduced courtesy of the upcoming Chang hard fork. These governing bodies would be elected by ADA holders, as per CIP 1694.
In addition, Hoskinson communicated that the impending Cardano network upgrade will integrate mechanics such as liquid democracy with a constitutional republic. These concepts would enable institutions to approve and implement things like budgets and roadmaps.
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Binance set to support Cardano’s network upgrade.
Among the crypto trading platforms prepared for the upcoming upgrade on Cardano network is Binance. The leading crypto exchange by trading volume announced its readiness for the Chang hard fork in a recent blog post, noting that it will handle all technical requirements for its users. These requirements include ensuring that ADA is compatible with the new fork.
To achieve this, Binance will temporarily suspend ADA deposits and withdrawals on 1 September 2024 to reopen when the upgrade must have been successfully concluded and the Cardano network deemed stable. “Starting at approximately 2024-09-01 20:45 (UTC), Binance will suspend the deposits and withdrawals of token(s) on the Cardano (ADA) network to support its network upgrade and hard fork to ensure the best user experience,” the announcement said.
Read also: What is Cardano (ADA)?
Potential impact on ADA price
The Cardano native token, ADA, has been in a downtrend in the past week alongside several cryptoassets, including BTC and ETH, as bearish sentiments continue to rule the crypto market in the short term. In particular, its price has plunged over 11% in the past seven days.
However, in the past 24 hours, the 12th largest cryptocurrency by market cap has been consolidating around $0.34 at the time of writing. Given that the upcoming Chang hard fork is a positive development that aims to make the Cardano network fully decentralized, interest in the PoS blockchain may likely increase resulting in a potential upsurge in ADA price.
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Ndianabasi Tom A crypto journalist and content writer who has been talking about cryptocurrency and blockchain technology since 2018, Ndianabasi is a Writer at Crypto Asset Buyer (CAB).
