Cardano Foundation Proposes New Governance Model as ADA Drops 2%

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As an experienced analyst, I believe that the Cardano Foundation’s decision to implement a more decentralized governance model is a positive step towards building trust and ensuring the long-term success of the Cardano ecosystem. By involving delegate representatives (DReps), stake pool operators (SPOs), and a constitutional committee in the decision-making process, the foundation is promoting inclusivity, diversity, and transparency.

The Cardano Foundation, the charitable group overseeing the advancement and upkeep of the Cardano blockchain platform, which specializes in expanding capabilities, declared a fresh governance structure post-Chang Hard fork, enhancing the system’s decentralization.

According to a recent statement, the Cardano Foundation revealed that the new governance structure will foster inclusivity and diversity, as well as establish controls through delegate representatives (DReps), stake pool operators (SPOs), and a constitutional committee.

During the transition period between the Chang 1 and Chang 2 upgrades, the Foundation will establish an Interim Constitutional Committee (ICC). This committee will hold the power to approve modifications to protocol parameters autonomously, as well as instigate hard forks in collaboration with Super Representatives.

During the initial stage of Cardano Foundation’s governance process, just three kinds of actions are permissible. These include modifying parameters, initiating hard forks, and executing informational actions.

As a key player in the Cardano community, I, the Cardano Foundation, will participate in the early development of our ecosystem in two capacities. Initially, I will serve as a member of the Interim Constitutional Committee (ICC). Later, I will engage in the ICC elections to further contribute to this crucial stage.

As an analyst, I would explain it this way: I will be the one overseeing the responsibilities linked to the Cardano ecosystem under the International Community of Cardano (ICC). My duties include interpreting the Cardano Constitution, evaluating governance actions, maintaining transparency and fairness within the ecosystem, fostering initial governance structures, and leading the shift towards a fully operational Constitutional Committee.

Additionally, every representative from the ICC (International Council of Cardano) is endowed with a single vote, and the Cardano Foundation is entitled to take part in the balloting procedure of the ICC. The contenders for election were evaluated based on their adherence to the Cardano Constitution, engagement with the community, proficiency in the relevant domain, dedication to growth and communication, and openness.

The ranking was as follows: The Cardano Atlantic Council, Eastern Cardano Council, Lloyd Duhon, Johnny Kelly, Cardano Japan, and Joshua Stone. The Cardano Foundation “strongly emphasized transparency throughout the process” and participated in the election using 20 million ADA tokens.

The Foundation’s announcement emphasized their ongoing dedication to building a strong and accountable governance structure for the Cardano ecosystem through active engagement, securing its longevity and authenticity.

Cardano (ADA) Token’s Performance

The Cardano blockchain network is making strides towards increased decentralization, yet its native token, ADA, has underperformed, dropping by nearly 2% over the last 24 hours. Simultaneously, there has been a substantial increase in trading activity, with a volume of $256 million recorded.

The ADA token holds a spot among the top ten cryptocurrencies based on market value, boasting a capitalization of $13.6 billion. However, its price has seen a 2.67% decrease over the past week and a more significant drop of 17.20% in the previous month. In contrast, its competitor Solana (SOL) has surged, with an impressive gain of 730.82% since June 2023.

As an analyst, I’m pleased to report that this week, the blockchain network effectively thwarted a distributed denial of service (DDoS) assault, intended to purloin the ADA tokens deposited thereon. Fortunately, the blockchain remains unscathed and operates smoothly following this strategic attempt.

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2024-06-27 14:54