Cardano Shifts to Dijkstra Development Phase as Governance System Faces Crucial Test

Cardano is shifting towards its Dijkstra development phase, where the network will fund core development directly from its own community treasury. This change marks a significant shift in Cardano's governance structure, which now relies on direct voting and delegation of votes to Delegated Representatives (DReps). The current focus is on a 12-month program called PRIME, aimed at rebuilding Cardano's decentralized finance (DeFi) liquidity.

The recent PRIME treasury vote cleared a 120 million ADA withdrawal, which will be used to fund the development of new DeFi projects. This vote demonstrates the power of DReps in making decisions on behalf of ADA holders. However, not all proposals have been successful, as seen with the Constitutional Committee's stalled renewal vote.

The committee is responsible for setting the network's direction and has seven seats, four of which are set to expire by September 1, 2026. Currently, DRep support for renewing these seats sits at around 33.8%, far below the required 67% threshold. This deadline marks a critical test for Cardano's governance system, as it will determine whether the network can adapt and evolve in response to changing circumstances.