Cardano Activates Decentralized Governance with Chang Hard Fork

Cardano's Chang hard fork marked a significant shift in its governance model, introducing on-chain voting mechanisms and decentralizing decision-making power. The upgrade, which activated on September 1, 2024, was the result of years of planning and community input.

The new governance system, defined by CIP-1694, allows ADA holders to vote directly or delegate their consensus power to a DRep (delegated representative). This change represents a major departure from the previous model, which relied heavily on Input Output Global, the Cardano Foundation, and Emurgo.

The Constitutional Committee plays a crucial role in ensuring that governance actions are constitutional, while stake pool operators continue to hold an active voting role. The introduction of PlutusV3 also enabled more advanced governance actions, including DAO-style consensus.