The ratification of a final and permanent Cardano Constitution is only a few months away. As this monumental landmark inches closer, it’s important to review the steps that the Cardano community has taken in the past few years to finally establish an on-chain and decentralized governance.
CIP-1694: An interim Constitution
Cardano's journey towards a fully decentralized future took a significant step forward in November 2022 with the introduction of the Cardano Improvement Proposal (CIP-1694). This groundbreaking document outlines a new on-chain governance system, bringing decision-making power directly to Cardano community members.
This constitution, which will remain active until the ratification of the final Cardano Constitution in December 2024, establishes the basic principles for on-chain governance, as outlined in CIP-1694. In essence, CIP-1694 aims to empower every ADA holder with a voice in shaping the future of Cardano's governance. Likewise, the interim Constitution prioritizes stability during this transition period, ensuring a smooth shift towards a fully community-driven Cardano.
Cardano's governance roadmap, especially with CIP-1694 at its core, outlines a carefully planned path towards a decentralized and community-driven system. This roadmap prioritizes a gradual transition, ensuring the Cardano community has ample opportunity to provide feedback and influence the process. This iterative approach allows for refinements along the way, fostering a robust and user-driven governance model for Cardano.
Inspired by the Enlightenment thinker Voltaire, CIP-1694 aims to give everyone a voice in Cardano's evolution, ensuring a balanced and representative approach to on-chain governance.
Here's what CIP-1694 proposes:
A voting system for deciding on crucial aspects of the Cardano ecosystem, including changes to the protocol itself, new standards for network improvements, how to allocate funds for on-chain projects, and even governance rules for Cardano native tokens like ADA.
A three-chamber voting system: Stake Pool Operators (SPOs) who run the Cardano network, Delegate Representatives (DReps) elected by ADA holders, and a Constitutional Committee that oversees the entire process.
Cardano's Trajectory to Decentralization and the Upcoming Voltaire Era
Cardano's development has been divided into distinct eras, each focusing on a specific aspect of blockchain technology:
Byron (2017): Introduced decentralization to the network.
Shelley (2020): Enabled native tokens on Cardano.
Goguen (2021): Introduced smart contracts, allowing for building decentralized applications (dApps).
Basho (Current): Focuses on scalability solutions for the network.
The upcoming stage, known as the Voltaire era, marks Cardano's transformation into a true Decentralized Autonomous Organization (DAO). The Voltaire era marks a pivotal moment in Cardano's evolution. By introducing voting and treasury systems, Cardano aims to transition from a centralized network to a self-sustaining, community-governed platform. This era empowers ADA holders to directly influence the network's future by proposing and voting on improvements. This shift from a centralized model to a decentralized one is crucial for Cardano's long-term success and growth.
The Cardano Chang Upgrade
In the past few weeks, there have been several developments regarding Cardano’s transitions toward the much anticipated Voltaire Era. This week that Cardano Founder Charles Hoskinson announced that the Chang Hard Fork Upgrade was expected to reach completion by September 1st, following the arrival of Cardano node v9.0, the final development step before the hard fork. This new version equips validators with the tools needed to transition the network to the Chang era. The hard fork itself will be implemented in two phases, outlined in CIP-1694.
The initial stage, known as Chang #1, focuses on laying the groundwork for on-chain governance. This includes introducing essential features and entering a technical bootstrapping phase as outlined in CIP-1694. During this period, DReps can begin registering, and ADA holders can prepare to delegate their voting power.
Chang #2 marks the transition to full-fledged decentralized governance. The community will have the authority to propose and vote on governance actions, including treasury withdrawals. This phase will see the active participation of DReps, SPOs, and the Constitutional Committee in decision-making. By gradually introducing governance features and empowering the Cardano community, the Chang upgrade marks a pivotal step towards a truly decentralized blockchain.
Global Workshops
Throughout 2024, Cardano will gather community input through global workshops and discussions to shape the ratification of the final Cardano Constitution. Intersect, a member-based organization for the Cardano ecosystem, will be hosting these workshops, putting the community at the center of the ecosystem’s governance development. A key element is the opportunity to host global workshops focused on drafting the document.
Intersect, working closely with its members and guided by the Cardano Civics Committee, will facilitate discussions leading up to the on-chain ratification of the final Constitution in early 2025. The Cardano Civics Committee will contribute by providing input on a new draft and defining the process for selecting delegates for the Cardano Constitutional Convention in Buenos Aires this December.
Last month, Intersect confirmed the global workshops, which will take place between August 1st and October 15th. These workshops will take place in all six continents, spanning from countries like Ghana, Sri Lanka, Serbia, Estonia, Greece, Mexico, and Venezuela.
The Cardano Constitution: A Blueprint for Decentralization
The Cardano Constitution serves as the foundational document outlining the principles and rules that govern the Cardano blockchain. It establishes the framework for decision-making, defines the roles of governance bodies, and outlines procedures for network changes. This document ensures Cardano's operations align with the community's interests while maintaining transparency, inclusivity, and effectiveness.
Interpreting the Constitution requires meticulous analysis of its clauses, akin to legal document interpretation. Each clause must be examined for its literal meaning, intended purpose, and broader implications for governance. For instance, a clause detailing protocol change procedures should be analyzed to understand the exact conditions and stakeholder responsibilities involved.
When applying the Constitution to real-world governance decisions, clear reasoning must accompany each vote. This establishes a precedent that reinforces the Constitution's legitimacy. As Cardano evolves, these precedents will shape future interpretations, ensuring consistency and fairness in governance actions.
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