- ADA is rallying amid a bullish week for several cryptocurrencies.
- An update to the CIP-1694 governance mechanism has been revealed.
- The CIP-1694 update will support Cardano’s upcoming Voltaire era.
The Cardano (ADA) network has kept building during the prolonged bear market, with a near-constant roll-out of new developments, partnerships, and events.
In a recent turn of events, the cryptocurrency market has seen a favorable week in the wake of the centralized banking crisis currently rampaging throughout the United States. Cardano is slotted in amidst many cryptocurrencies recording gains over the last seven days.
The network has rolled out the latest update to CIP-1694 in preparation for the Age of Voltaire, wherein Cardano will assume full decentralization.
CIP-1694 On-Chain Governance
On March 14th, 2023, Cardano founder Charles Hoskinson revealed the roll-out of a new update to the CIP-1694 on-chain governance mechanism.
The formal update of the event has been shared by Input Output Hong Kong (IOHK) formal methods engineer Jared Corduan. According to the update, CIP-1694 includes removing the existing governance support for protocol parameter updates and MIR certificates.
Furthermore, the update will introduce two new fields, governance actions and votes, and three governance bodies to ratify actions.
In a nutshell, Cardano’s on-chain governance system is being revised to support the new requirements for Voltaire and address the shortcomings of the current Shelly governance design.
Shelley vs. Voltaire: Governance Royale
The Cardano Improvement Proposal (CIP) 1694 proposes a new mechanism for on-chain governance to support the upcoming Voltaire phase of Cardano.
The current Shelley governance design provides no room for active on-chain participation of ADA holders, lacks transparency and layers of control over treasury movements, and does not differentiate hard forks from other protocol parameter changes.
CIP-1694 is poised to provide a first step towards decentralized decision-making that is technically achievable in the near term.
At the time of writing, Cardano’s native cryptocurrency ADA is rallying over $0.36, recording a notable 9.53% increase over the past seven days, along with several other inclining cryptocurrencies.
Seven-day Price Chart for Cardano. Source: CoinMarketCap
#1 Ranked cryptocurrency Bitcoin (BTC) is turning heads with a spike of 16.99% over the past seven days. The upward trajectory of BTC is attributed to the banking crisis in the U.S., upping market sentiment across the board as a result.
On the Flipside
- The past few weeks have been CIP-mania across the Cardano community, including feedback, discussions, and debates about Cardano’s governance.
- Beyond ADA’s recent retracement, Cardano remains at the #7 rank by market capitalization.
Why You Should Care
Beyond the uptick of ADA and other cryptocurrencies, Cardano stays true to its long-term vision of true decentralization.
Read more about Cardano’s recent price action:
Cardano (ADA) Climbs to $0.34 Amidst DJED & Hoskinson Action
Read more about Solana’s recent price action:
Solana (SOL) Reclaims $20 Amidst Crypto Corrections