EMURGO, a founding entity and the industrial arm of the Cardano blockchain, has disclosed five significant updates set to be introduced within the upcoming second phase of the Chang hard fork. In a blog post published on October 29, EMURGO outlines the advancements that may further Cardano’s progression toward full decentralized governance and enhanced network functionality.

The primary a part of the Chang hard fork was successfully activated on September 1. The primary phase implemented critical changes, resembling the burning of genesis keys, granting voting power to the Interim Constitutional Committee, and embedding the hash of the Interim Structure on-chain.

While the activation date for Chang Hard Fork Part 2 has yet to be announced, the revealed updates are poised to empower the Cardano community further and solidify the network’s decentralized governance model. Below are the five key changes expected within the upcoming hard fork:

#1 Cardano’s DRep Voting

The introduction of Delegate Representative (DRep) Voting is a cornerstone of the second phase of the Chang Hard Fork. DReps will turn out to be considered one of the three primary governing bodies inside Cardano’s future governance structure, serving as a mechanism for community-driven decision-making.

“Once fully integrated, DReps could have the authority to vote on proposals and governance actions submitted by the Cardano community […]. This makes their role essential for representing the voice of ADA holders on the network,” EMURGO states.

Registration to turn out to be a DRep is currently open. Interested parties are required to make a one-time deposit of 500 ADA to acquire an on-chain DRep certificate, officially designating them as registered members.

#2 SPO Voting

Stake Pool Operator (SPO) voting is one other significant upgrade in Chang part 2, granting infrastructure providers a direct role in governance. As core governing bodies on the Cardano network, SPOs will soon find a way to leverage the ADA delegated to their pools as voting power.

“With this update, SPOs can soon leverage the ADA delegated to their pools as voting power,” EMURGO explained, adding: “This implies they, like DReps, can vote to approve or reject community-proposed governance actions, helping shape Cardano’s future.”

The influence of SPOs will depend upon the quantity of ADA delegated to them, making it crucial for SPOs to take care of delegation levels and communicate decisions transparently to delegators.

#3 Governing Actions

The implementation of governing actions is a key feature in Cardano’s move toward full decentralized governance. These actions are proposals that any member of the Cardano community can submit. With the activation of Chang hard fork part 2, ADA holders will probably be empowered to create and submit these proposals.

“To initiate a proposal, ADA holders must make a small ADA deposit, which is fully refunded after voting ends, whatever the result,” the blog post details. Governing actions will probably be subject to voting by each SPOs and DReps. “Through these mechanisms, Cardano is really placing control within the hands of ADA holders, further strengthening its decentralized governance framework,” EMURGO notes.

#4 Cardano Treasury Withdrawals

Chang part 2 will introduce a treasury withdrawal system linked to successful governing actions, enabling the funding of community-approved initiatives directly from Cardano’s treasury. “This mechanism enables ADA holders to actively shape how treasury funds promote network growth,” EMURGO states. “Quite than merely serving as suggestions, these governing actions turn out to be actionable, community-driven projects with dedicated resources for execution.”

#5 Expanded Constitutional Committee

The completion of Chang part 2 will allow for the expansion of the Constitutional Committee. Currently limited to a set membership of seven within the interim phase, the committee will open its doors to additional members post-upgrade.

“The expanded committee will welcome individual members in addition to representatives from firms, DAOs (decentralized autonomous organizations), NGOs, and other groups inside Cardano,” EMURGO reveals. “Each entity can appoint a representative to take part in the Constitutional Committee’s operations, adding a possible latest layer of inclusivity to Cardano’s decentralized governance framework.”

EMURGO concludes the blog post by emphasizing the collaborative nature of those developments: “Through these enhancements, Cardano is really placing control within the hands of ADA holders, further strengthening its decentralized governance framework.”

At press time, ADA traded at $0.3564.

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