On September 1, the Chang hardfork is scheduled to be activated , an update to the Cardano network that will bring with it several changes, including the decentralization of network governance.
This update seeks to establish a system in which ADA holders (Cardano's native cryptocurrency) can participate directly in decision-making. This is the first phase of a process that will be completed in the coming months, with the introduction of new governance tools and improvements in the network's scalability.
The initial phase of the Chang hardfork will implement the Cardano Provisional Constitution and an Interim Constitutional Committee (ICC). This temporary structure will be responsible for guiding Cardano’s transition to a fully community-based governance model. The ICC will have the ability to veto proposals through on-chain voting, thereby ensuring that the decentralization process is progressive and controlled.
In addition to decentralizing governance, the Chang upgrade also aims to improve the scalability of the Cardano network. With the hardfork, transaction processing capacity is expected to increase from the current 250 transactions per second (TPS) to over 1,000 TPS. It remains to be seen whether this long-awaited goal is achieved in the coming days.
It is worth clarifying that ADA holders (both on exchanges and in self-custody wallets) do not have to do anything regarding this update. Even so, it is advisable not to make ADA transactions in the minutes before or after the update, simply as a preventive measure, in case something goes wrong.
As can be seen in the following chart, the market does not seem too enthusiastic about these developments, as reflected in the price of the ADA cryptocurrency, which has been trending downwards in recent days.
Almost 2 months ago, frustration seems to be the dominant emotion in many ADA investors, who have not seen significant price increases for years or are not satisfied with the technical improvements that this network has.
Still, some analysts are optimistic. Dan Gambardello, founder of the investment firm Crypto Capital Venture, for example, believes that the Chang upgrade will be very significant for the entire ecosystem. Although, perhaps, his optimism leads him to be a bit exaggerated. “It’s not just another upgrade; it’s a real turning point in the history of cryptocurrencies,” he says .
It is very likely after the Chang update, volatility in the price of ADA will increase.
