Cardano (ADA) Adopts Token-Based Decentralized Governance Model

Smart contract blockchain Cardano (ADA) brought major changes with the last protocol update. Cardano has undergone the first stage of implementation of its Chang hard fork. With this update, the network became the first major blockchain to adopt a token-based decentralized governance model.

Cardano (ADA) blockchain underwent a major protocol update, introducing a token-based decentralized governance model.

The first stage of Cardano's Chang hard fork is now live, making the network the first major blockchain to adopt a decentralized governance model.

Cardano will have a fully community-led governance model, overseen by an interim committee for the next three months. After 90 days, the second stage of the hard fork will activate new governance bodies.

According to Cardano's documentation, the goal of the first stage is to ensure "security and continuity during the governance bootstrapping phase."

During this time, delegate representatives will be able to register and campaign for delegation, while a final constitution is being developed and ratified by early 2024.

Cardano is currently the 11th largest cryptocurrency by market capitalization, according to CoinMarketCap data. The network is valued at just under $12 billion, with ADA trading at $0.33 after seeing 0.8% of gains over the last 24 hours.

Ethereum (ETH) co-founder and Cardano founder Charles Hoskinson said in a recent video, "When I reflect back at where we started as an ecosystem it was just an idea…we've grown tremendously throughout the years."

"There've been ups and downs, there's been a lot of disappointments, but now we are here."

"Now we are here today…a day where the entire ecosystem, the community, every holder of ADA stands shoulder to shoulder as equals and they all have a say in the future not just of this protocol, but what this protocol can do for everyone in the world."

This follows Hoskinson's suggestion for a decentralized identity solution to fix X's cybersecurity problems.

His idea came after the profile of famed artificial intelligence developer Ben Goertzel was compromised.