- Cardano’s Plomin hard fork gives $ADA holders real voting power on the blockchain’s future.
- Cardano embraces full decentralization, potentially attracting institutional investment.
- Post-upgrade, ADA holders must use Delegated Representatives (DReps) to get staking rewards.
The Cardano Foundation has announced that the Cardano blockchain will transition to a fully decentralized governance model. This follows the successful implementation of the Plomin hard fork.
In an X post, the company said that “$Ada holders gain real voting power – on parameter changes, treasury withdrawals, hard forks, and the blockchain’s future.”
Giving users more control may foster greater user confidence and drive wider adoption. This means that this shift in governance could attract significant institutional investment.
Even though it may be too early to tell, ADA’s price might go up by a considerable margin due to this turn of events. Currently, it sits at $0.93. Some long-term predictions say that the price may double, while the more optimistic estimates see the token rising even more.
Whether that turns out to be true is yet to be determined, but this transition definitely shines a new light on Cardano.
The Plomin Hard Fork Explained
Named in honor of the late Matthew Plomin, a notable Cardano community contributor, the Plomin hard fork represents a milestone in Cardano’s evolution. It transitions the network to a more democratic and transparent system, with ADA holders actively steering its future direction.
Thanks to the hard fork, ADA holders can now vote directly on protocol updates, treasury allocations, and other governance actions. Alternatively, they can delegate their voting power to Delegated Representatives (DReps), ensuring broader community involvement.
Related: Institutional Focus Turns to ADA: Cardano ETF Prediction
Decisions require specific thresholds for approval, making sure that changes reflect the collective will of the community.
Also, it’s worth noting that post-upgrade, ADA holders must delegate to a DRep to withdraw their staking rewards. This delegation can be executed through various methods, including single keys, native scripts, or Plutus v3 scripts.
The Plomin hard fork was ratified after 94% of block-producing stake pools upgraded to a compatible node version, 65.38% of SPOs voted in favor of the hard fork, and 100% of the ICC confirmed the hard fork’s constitutionality.
Related: Charles Hoskinson: Why Ulbricht’s Pardon Matters to Crypto
All things considered, this is an exciting time for ADA holders and Cardano, as crypto enthusiasts are eagerly waiting to see the first results of this change.
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