Cardano 9.0 Unleashes On-Chain Governance

The Cardano blockchain is set to roll out the final version of Node 9.0. Once 70% of stake pool operators have upgraded, a hard fork will be initiated and a full on-chain governance system will be activated. Founder Charles Hoskinson recently said: talked Regarding the implementation of this ambitious project, he stressed that on-chain governance is of utmost importance to maintain competitiveness and operational efficiency.

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On-chain governance, when done correctly, allows for rapid upgrades and keeps the system competitive and relevant. It allows for decentralized management of a wide range of functions, including recruiting, branding, marketing, development, research, and even national defense.

But implementing on-chain governance doesn’t come without hurdles. Hoskinson highlighted a complex set of challenges the team faced, such as gaining consensus among a diverse group of participants from around the world. To address these challenges, the Cardano ecosystem spent two years developing SIP 1694, named after the year Voltaire was born.

The proposal seeks to achieve three key outcomes: creating a government that is effective, efficient and has a high level of integrity. Hoskinson calls this the “governance trilemma” and argues that while difficult to achieve perfectly, it is effective and efficient.

The founders also outlined the meticulous process involved in creating a groundbreaking on-chain governance model, which began with drafting a blockchain constitution – an on-chain expression of fundamental rights specific to decentralized applications. [dApps] And users. Unlike human rights, these blockchain rights are tailored to the unique circumstances of the blockchain ecosystem, he said.

Cardano embraces liquid democracy and a constitutional republic

The next goal was to build effective institutions to support this governance. These institutions would need to break down complex issues like budgets, hard forks, and changes to protocol parameters into states that can be voted on efficiently. Without such mechanisms, the governance system would lack effectiveness and efficiency.

To represent its diverse community, Cardano has adopted a constitutional republic model with elected representatives and integrated it with a fluid democracy (a dynamic governance model). In this system, representatives [dReps] Once registered, users can delegate their voting power, which can be revoked at any time and allows voting power to fluctuate every epoch.

These elements form the backbone of our proposed governance model, SIP 1694. The journey to this point included a comprehensive prototype design, followed by 25 workshops in over 20 countries, numerous iterations, and extensive testing on the Sancho Net testnet.

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