New Era

Cardano

<ul>
 <li><strong>ADA holders now have direct voting power in Cardano’s decision-making, enhancing the network’s governance structure.</strong></li>
 <li><strong>Expectations are set for Cardano’s transaction capacity to significantly increase from 250 to over 1000 transactions per second.</strong></li>
</ul>
<p>On September 1, 2024, the cryptocurrency community witnessed the activation of the Chang hardfork on the <a href="https://www.ethnews.com/cardanos-revolutionary-chang-update-ushers-in-the-voltaire-era-of-decentralized-governance/" rel="noopener noreferrer nofollow">Cardano</a> network. This update, anticipated to be a historical turning point, introduces profound changes, notably in how network governance is decentralized.</p>
<p>Cardano, a leading cryptocurrency network known for its robust technology and potential, has embarked on a journey to transform its governance model. This strategic move towards decentralization was activated at 21:45 UTC, signifying a major shift in how <a href="https://www.ethnews.com/experts-reveal-2024s-top-3-altcoins-that-could-outperform-cardano-ada-and-ripple-xrp-in-september/" rel="noopener noreferrer nofollow">ADA</a> holders will interact with the network’s future. The update aims to empower ADA holders by giving them direct voting rights in crucial network decisions, marking the initial phase of a broader plan to overhaul Cardano’s governance structure.</p>
<h2 id="enhancing-governance-and-scalability">Enhancing Governance and Scalability</h2>
<p>The first step in implementing this change is the introduction of an Interim Constitution and an Interim Constitution Committee (ICC). These temporary structures are set to manage the transition as <a href="https://www.ethnews.com/are-cardano-and-this-0-03-ai-altcoin-millionaire-makers/" rel="noopener noreferrer nofollow">Cardano</a> evolves into a fully community-governed platform. The ICC is empowered to veto proposals via on-chain voting, ensuring the decentralization process is both progressive and controlled.</p>
<p>Additionally, the Chang upgrade aims to significantly enhance the scalability of the <a href="https://www.ethnews.com/cardanos-game-changing-update-is-almost-here-find-out-why-september-1st-will-make-history/" rel="noopener noreferrer nofollow">Cardano</a> network. Prior to the update, the network could handle 250 transactions per second (TPS). With the hardfork, this capacity is expected to leap to over 1000 TPS, a vital enhancement that could resolve throughput issues and improve overall network efficiency.</p>
<p>Despite these substantial upgrades, <a href="https://www.ethnews.com/cardano-ada-and-ethereum-eth-bears-about-to-get-wrecked-with-market-recovery/" rel="noopener noreferrer nofollow">ADA</a> holders need not take any specific actions related to their holdings at exchanges or personal wallets during the update. However, it is advisable to avoid executing any ADA transactions immediately before or after the update as a precautionary measure against potential disruptions.</p>
<h2 id="market-response-and-investor-sentiment">Market Response and Investor Sentiment</h2>
<p>Although these developments are structurally significant, the market response has been tepid, with <a href="https://www.ethnews.com/sundog-and-cybro-dominate-leaving-cardano-behind-in-a-new-crypto-era/" rel="noopener noreferrer nofollow">ADA</a>‘s price showing a downward trend in the days leading up to the hardfork. This could be attributed to a mix of high expectations and a prolonged period of dissatisfaction among investors, who have witnessed minimal price appreciation in recent years despite continuous technical enhancements to the network.</p>
<p>In contrast, some industry analysts remain optimistic about the potential impact of the Chang update. Dan Gambardello, founder of Crypto Capital Venture, regards the update as a</p>
<blockquote>
 <p>“real turning point in the history of cryptocurrencies,”</p>
</blockquote>
<p>though his enthusiasm might be seen as somewhat overstated by others.</p>
<p>As the activation time of the Chang update drew closer, market volatility for <a href="https://www.ethnews.com/cardanos-million-dollar-dare-are-you-smart-enough-to-hack-it/" rel="noopener noreferrer nofollow">ADA</a> was expected to increase, reflecting the significant interest and uncertainty surrounding these changes.</p>
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<p>The post <a href="https://www.ethnews.com/cardanos-chang-update-activated-a-new-era-for-ada-governance-and-scalability/" rel="noopener noreferrer nofollow">Cardano’s Chang Update Activated: A New Era for ADA Governance and Scalability</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.</p>

Cardano’s Chang Update Activated: A New Era for ADA Governance and Scalability

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