Cardano is set to undergo a significant transformation with the upcoming Plomin hard fork, marking a crucial step towards full decentralized governance. This shift will grant ADA holders real voting power over various aspects of the blockchain, including parameter changes and hard forks.
The Cardano Foundation has announced that the project will transition to full decentralized governance after Wednesday’s hard fork, known as Plomin. ‘This milestone marks a significant change in blockchain governance for the Proof-of-Stake (PoS) network.’
Cardano is a decentralized public blockchain and cryptocurrency project.
It was founded in 2017 by Charles Hoskinson, one of the co-founders of Ethereum.
Cardano's native cryptocurrency is ADA, which is used for transaction fees and staking.
The platform uses a proof-of-stake consensus algorithm called Ouroboros, designed to be more energy-efficient than traditional proof-of-work algorithms.
What is a Hard Fork?
A hard fork is a non-backwards compatible change to the blockchain’s programming. In simpler terms, it’s an update that changes the underlying rules of the blockchain, making it incompatible with previous versions. ‘This type of change requires all nodes on the network to upgrade and agree to the new version.’
The Plomin Hard Fork
The Plomin hard fork is set to go live later this Wednesday. As part of this update, Stake Pool Operators (SPOs) will need to upgrade their nodes and approve the upgrade with a 51% vote. According to recent data, nearly 80% of nodes have already been upgraded to the new version.
Decentralized Governance
With the transition to full decentralized governance, ADA holders will gain real voting power on various aspects of the blockchain, including:
Decentralized governance refers to a system where decision-making power is distributed among various stakeholders, rather than being concentrated in the hands of a single entity.
This approach allows for greater autonomy and participation from individuals or organizations within a network.
In decentralized governance, rules and protocols are often established through consensus-driven mechanisms, such as voting or smart contracts.
This enables more efficient and adaptable decision-making processes, reducing reliance on centralized authorities.
-
Parameter changes
-
Treasury withdrawals
-
Hard forks (like Plomin)
-
The blockchain’s future
This shift in governance is seen as a significant milestone for Cardano and its community. As the project moves towards full decentralization, ADA holders will have more control over the direction of the network.
Market Reaction
The ADA token has shown a slight increase ahead of the upgrade, trading at 93 cents at press time (up 1.4% on the day). This reaction suggests that investors are optimistic about the future of Cardano and its transition to decentralized governance.
