Cardano, a popular blockchain for smart contracts, has launched Node 10.1, setting up for the Chang 2 hard fork. This upgrade is expected to significantly enhance Cardano’s governance framework by shifting it entirely to on-chain governance. ADA token holders will soon have expanded control over the network’s direction, allowing them to participate more directly in key decision-making.
Over the past 24 hours, ADA’s price has jumped by more than 8%, reaching $0.358. This price boost aligns with an upswing across the cryptocurrency market, partly fueled by Donald Trump’s win for a second U.S. presidential term. Cardano’s upcoming governance upgrades and broader market conditions are sparking strong interest among investors, contributing to this price surge.
Chang 2 Hard Fork Builds on Previous Upgrades
Chang 2 builds on Chang 1, which launched in September, furthering Cardano’s vision for decentralized governance. The new hard fork will empower ADA holders to participate in governance directly. Token holders can delegate their voting rights to Delegated Representatives (DReps) or act as DReps themselves, ensuring community involvement in protocol decisions.
Related article: Cardano Node Upgrade Accelerates Its Chang Hard Fork Beeline
Alongside governance features, Cardano’s recent update adds critical technical improvements. New Plutus primitives will boost smart contract capabilities, enhancing the functionality of decentralized applications. Additionally, better support for Stake Pool Operators (SPOs) aims to optimize the network’s overall performance, making it more resilient and efficient.
Activation Requirements and Ratification Process
For Chang 2 to go live, both the Interim Constitutional Committee (ICC) and 51% of SPOs must approve the update. Upon meeting these requirements, the network will enter a one-epoch ratification period, followed by the full activation of the hard fork. This rigorous approval and ratification process ensures that the upgrade proceeds smoothly and with broad support.
Related article: Cardano on the Brink of Chang Hard Fork: A Bullish Catalyst for ADA?
Ahead of the upgrade, Cardano’s governance organization, Intersect, has encouraged SPOs, decentralized applications, and exchanges to ensure compatibility with Node 10.1.1. Intersect, the organization managing Cardano’s governance system, will guide stakeholders through the upgrade. Consequently, the community will stay informed and prepared for the upcoming changes.
With the Chang 2 hard fork introducing key governance and technical improvements, Cardano is set for a significant transition. The upcoming changes could reinforce Cardano’s competitive position and attract more participants to its ecosystem.
