Cardano enters a new chapter of full decentralization after the Plomin Hard Fork takes effect on January 29, 2025.
The development empowers ADA holders with real voting rights and a voice in the future of blockchain.
Cardano Plomin Hard Fork: More Than a Technical Upgrade
The fork implementation further complies with the principles outlined in the Cardano Improvement Proposal (CIP) 1694, emphasising community involvement and transparency.
However, it did not get here without other upgrades. The move toward decentralized governance began with the Chang upgrade, with Plomin as the final phase.
Once it takes effect, ADA holders can vote on critical network decisions, including parameter changes, treasury withdrawals, and future hard forks.
The upgrade required at least 51% of Stake Pool Operators (SPOs) to approve the changes.
Stakeholder support was revealed by the proportion of votes from stake pool operators and upgraded block-producing stake pools.
65.38% of Stake Pool Operators (SPOs) voted in favor of the upgrade, while 100% of the interim constitutional committee (ICC) confirmed its constitutionality.
Furthermore, 94% of block-producing stake pools had upgraded their nodes to versions compatible with the new protocol, emphasizing the readiness of the ecosystem.
The significant level of engagement signifies a robust commitment from the community to embrace decentralized governance.
Once in full force, holders can participate directly with the help of Delegated Representatives (DReps).
DReps add value by allowing broader participation while ensuring that even those who may not have time or expertise can still influence important decisions within the network.
Impact on DeFi
As the ecosystem continues to enhance the Cardano DeFi ecosystem with decentralized governance, it will attract more developers and projects seeking a robust platform for innovation.
Despite its potential, the upgrade faces the uphill challenge of proving that decentralized decision-making can effectively manage network upgrades and respond to community needs.
However, if it succeeds, it could redefine expectations around decentralized governance, set new standards for community engagement in blockchain technology, and inspire similar initiatives across the crypto landscape.
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