Cardano Chang Hard Fork Set to Enhance Network Decentralization

• Over 70% of Cardano nodes are ready for Chang’s hard fork, signalling strong ecosystem support.
• Chang’s hard fork will introduce a 1 billion ADA treasury, boosting Cardano’s project funding capabilities.
• Cardano’s ADA price climbs to $0.34 amid positive market response to the upcoming Chang hard fork.

The Chang hard fork is set to launch soon, and Cardano’s blockchain is about to change significantly. This improvement has been diligently developed over several months and was initially scheduled for a June release. Recent developments have seen a swift adoption of the new 9.1.0 node version, with over 70% of network nodes signalling readiness. This milestone indicates robust support and preparation across the ecosystem for the forthcoming changes.

NBX has upgraded on our exchange to Cardano-Node 9.1.0 and is ready for Chang HF. @Cardano_CF

— NBX (@nbxcom) August 8, 2024

The Chang hard fork is designed to enhance Cardano’s decentralization and improve the coordination among network nodes. It represents a departure from previous upgrades by shifting the implementation responsibilities to individual nodes rather than central coordination. Major cryptocurrency exchanges like Coinbase and Binance are updating their systems in anticipation, with several already transitioning to support the new network features.

Governance and Treasury Enhancements

A key component of the Chang hard fork is introducing a new governance model, which includes a constitution proposed by the Intersect organization. Initially, governance will be overseen by a seven-member interim constitutional committee featuring three representatives from the Cardano community. This phase will also see the introduction of a delegate system, allowing ADA holders to vote on proposals, thereby transforming the ADA into a governance token.

Furthermore, the upgrade will introduce a significant 1 billion ADA treasury aimed at funding new projects within the Cardano ecosystem. Despite the increase in circulating supply, the impact on the market is expected to be minimal, given the total circulation surpasses 37 billion ADA tokens.

Market Response and Exchange Readiness

The price of ADA, Cardano’s native cryptocurrency, has noticeably recovered as word of the Chang hard fork has circulated. The token’s value has risen to $0.34, coinciding with increased trading volume. This positive market response underscores the community’s optimistic outlook towards the potential benefits of the upgrade.

Moreover, exchanges are actively preparing for the upgrade. Bitfinex has emerged as the first exchange to signal complete readiness for the Chang hard fork, with several others, like Binance and Coinbase, making substantial progress. This broad-based readiness among exchanges is crucial for the smooth transition and implementation of the hard fork.

Despite the upgrade, Cardano still has obstacles, notably in its slow growth rate and limited adoption in the decentralized finance (DeFi) industry. Critics have referred to Cardano as a “ghost chain” because of its unused decentralized applications and exchanges.

However, the upcoming Chang hard fork and other improvements like the Hydra Head scaling solution may address some of these criticisms by enhancing transaction efficiency and reducing withdrawal lags.

Source