EMURGO, the developer and trading arm of the Cardano blockchain, has revealed five key updates that will be introduced in the upcoming second phase of the Chang hard fork. In a blog post published on October 29, EMURGO describes developments that will further Cardano’s progress towards full governance and improved network performance.
The first phase of the Chang hardfork was successfully implemented on September 1. The first phase made critical changes, such as burning the genesis keys, giving voting power to the Provisional Constitution Committee, and embedding the hash of the Provisional Constitution on-chain. .
Although the implementation date of Chang Hard Fork Part 2 has not yet been announced, the updates revealed are ready to further empower the Cardano community and strengthen the network’s management model. Below are five key changes expected in the upcoming hard fork:
Cardano’s DRep voting
The introduction of Delegated Representative Voting (DRep) is the basis of the second phase of the Chang Hard Fork. DReps will be one of the three main governing bodies within Cardano’s future governance structure, serving as a mechanism for community-driven decision-making.
“Once fully integrated, DReps will have the authority to vote on proposals and administrative actions brought by the Cardano community. […]. This makes their role very important in representing the voice of ADA owners in the network,” said EMURGO.
Registration to become a DRep is currently open. Interested parties are required to make a one-time deposit of 500 ADA to obtain a DRep certificate available on-chain, officially designating them as registered members.
#2 SPO voting
Stake Pool Operator (SPO) voting is another important development in Chang part 2, giving infrastructure providers a direct role in governance. As the main governing bodies in the Cardano network, SPOs will soon be able to use ADA sent to their pools as voting power.
“With this update, SPOs can immediately use the ADA assigned to their pools as a voting power,” explained EMURGO, adding: “This means that they, like DReps, can vote to approve or reject governance actions proposed by the community, helping to shape the future of Cardano. “
The impact of SPOs will depend on the number of ADA assigned to them, making it important for SPOs to maintain shipping standards and communicate decisions transparently to shippers.
#3 Dominant Actions
The implementation of regulatory actions is a key element in Cardano’s move to full governance. These actions are suggestions that can be submitted by any member of the Cardano community. With the activation of Chang hard fork part 2, ADA owners will be empowered to create and send these proposals.
“In order to initiate a proposal, ADA holders must make a small ADA deposit, which is fully refundable after the end of voting, regardless of the outcome,” the blog post details. Governing actions will be subject to voting by both SPOs and DReps. “In these ways, Cardano really puts control in the hands of ADA holders, further strengthening its governance framework,” EMURGO noted.
#4 Withdrawal of Card Money
Chang part 2 will introduce a treasury withdrawal system linked to successful administrative actions, which enables the funding of publicly approved programs directly from the Cardano treasury. “This approach enables ADA owners to establish how treasury funds promote network growth,” said EMURGO. “Instead of operating as mere proposals, these governing actions are actionable, community-driven projects with dedicated resources.”
#5 Expanded Constitutional Committee
The completion of Chang part 2 will allow for the expansion of the Constitutional Committee. Currently limited to seven permanent members in the interim phase, the committee will open its doors to additional members after development.
“The expanded committee will welcome individual members and representatives of companies, DAOs (private equity organizations), NGOs, and other groups within Cardano,” EMURGO revealed. “Each organization can appoint a representative to participate in the activities of the Constitutional Committee, adding a new potential layer to Cardano’s governance structure.”
EMURGO concludes the blog post by emphasizing the synergy of these developments: “With these improvements, Cardano truly puts control in the hands of ADA owners, further strengthening its decentralized governance framework.”
At press time, ADA traded at $0.3564.
Featured image from Shutterstock, chart from TradingView.com
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