The Cardano Foundation has announced plans to move its governance structure toward increased decentralization. This development comes as the blockchain network prepares for a significant upgrade called the Chang hard fork.
The June 27 announcement reveals the Cardano Foundation’s new role in the Interim Constitutional Committee (ICC) and its readiness for the upcoming Change upgrade.
Cardano Unveils Governance Decentralization
The Cardano Foundation has proposed a new governance model to improve Cardano’s governance structure. This proposed model establishes a more transparent and robust governance framework, promoting the Cardano ecosystem’s integrity and long-term success.
In the announcement, the foundation clarified that the proposed model will foster diversity, accountability, and inclusivity. It will introduce key features such as stake pool operators (SPOs), constitutional committees, and delegate representatives (DReps), providing necessary checks and balances in the ecosystem.
To promote stability in the Cardano network, the foundation will become an ICC member and participate in the ICC election.
During the transition phase between the Chang 1 and 2 upgrades, the ICC will play a crucial role by overseeing three primary governance actions. These action types include hard fork initiations, parameter changes, and informational actions.
The ICC will independently approve protocol parameter changes and work closely with SPOs to implement hard forks.
The committee will oversee governance actions, ensure fairness and transparency, and support initial governance structures. Other roles include guiding the transition until a full Constitutional Committee is established post Chang upgrade.
Meanwhile, the Cardano Foundation voted in the ICC election to prepare for this new governance phase.
The foundations revealed top candidates selected based on their commitment to the Cardano network, transparency, technical expertise, and community engagement.
The top candidates include the Cardano Japan, Eastern Cardano Council, Cardano Atlantic Council, Johnny Kelly, Lloyd Duhon, and Joshua Stone.
Emphasizing its commitment to transparency, the foundation revealed that it cast its vote with 20 million ADA. Also, there is a provision for the community to track this voting process via a pool.pm, ensuring all steps are visible and accountable to stakeholders.
Notably, by assuming a position in the ICC, the foundation aims to establish a stable network as the ecosystem readies for the upcoming hard fork.
Cardano (ADA) Market Outlook
Amid the latest developments, the price of ADA declined by over 2% in the past 24 hours and more than 3% over the past week. As of the time of writing, ADA trades at $0.381, with a low of $0.378 and a high of $0.393 over the past 24 hours.
Despite this decline, trading activity has picked up, with the trading volume rising by 10% over the same period. However, it’s important to note that the open interest in Cardano futures, which reflects the total number of outstanding futures contracts, has decreased for over a week.
In the last 24 hours alone, it dropped by 2.84% to $202.46 million. This downward trend suggests that fewer traders are betting on ADA’s future price movements.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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