Some crypto leaders see community-led governance as the pinnacle of decentralization. Cardano is nearing this milestone with the Chang upgrade, which introduces self-sustaining features like on-chain voting and community treasury control.

While the Chang hard fork is a significant step toward Cardano’s vision of positive change through blockchain, Cardanoscan data reveals a surprising lack of urgency from Stake Pool Operators (SPOs) and exchanges in adopting the necessary upgrades.

Slow Progress on Cardano’s Chang Hardfork

The Chang hard fork marks a major milestone for Cardano. It transitions blockchain control from developers’ Input Output to ADA holders. This shift aims to boost decentralization, enabling token holders to influence the project’s future through community-led decision-making.

A key step was the release of Node 9.1.0 on July 25, laying the foundation for the Chang hard fork. However, current on-chain data shows implementation of this critical update is lagging. 

According to Cardanoscan’s Chang Readiness page, 67% of exchanges have yet to begin the upgrade process, 27% are working on the update, while only 5%, three exchanges, have completed it. The lack of exchange urgency has resulted in a low 0.7% liquidity readiness.

Similarly, of Cardano’s 3,100 SPOs, only 26% (or 807 SPOs) have completed the upgrade. To proceed with the Chang upgrade via the hard fork combinator, 70% of SPOs must adopt the latest node software, and exchange liquidity must exceed 80%. 

The Hardfork Combinator

Cardano hard forks differ from the approach taken by other blockchains. Instead of halting and restarting the network like other chains, Cardano uses the hard fork combinator. This process combines old and new protocols without shutting down the network, allowing for an uninterrupted transition across major upgrades.

The Chang upgrade is being rolled out in two phases. The first phase began in July with the release of Node 9.1.0, laying the groundwork for on-chain governance. The second phase, set for rollout in Q4, will introduce community-controlled treasury withdrawals.

On the Flipside

IO CEO Charles Hoskinson believes sound governance is the key to project longevity.
The Vasil upgrade, Cardano’s last major hard fork in September 2022. It enhanced security and scalability and introduced more expressive smart contracts.

Why This Matters

Delays in Cardano’s Chang implementation highlight the complexities of blockchain decentralization, reminding us that the journey to true community governance is often slower and more challenging than anticipated.

Source : DailyCoin - Aug 12, 2024