01 June 2023 14:12, UTC
Reading time: ~3 m
In an article published earlier today, EMURGO, the official commercial arm of Cardano, offered an in-depth analysis of the Cardano Improvement Proposal (CIP) 1694, shedding light on its potential implications for Cardano ADA holders. EMURGO’s detailed breakdown provides a comprehensive understanding of CIP-1694 and its potential impact on the Cardano ecosystem.
According to EMURGO, Cardano, a decentralized blockchain, was designed to be governed by its community of ADA holders. CIP-1694 is a significant stride towards realizing this vision. It is a crucial component in shaping Cardano’s future and is viewed as a major upgrade for the Cardano community.
EMURGO explains that CIP-1694 is a formal document proposed by the Cardano community. It contains detailed specifications and organizational notes about topics related to on-chain governance for Cardano. These topics include, but are not limited to, Cardano native tokens, new standards for on-chain improvements, and proposed changes to the Cardano protocol.
The proposal is currently in an experimental phase and is subject to extensive debates and discussions among various stakeholders in the Cardano community. These stakeholders include developers, holders, academics, and stake pool operators. The governance of a decentralized protocol such as Cardano has never been attempted on this scale, making these discussions crucial for the future of the project.
CIP-1694 is designed to empower every Cardano ADA holder with a voice in the future direction of Cardano. The Cardano Constitution, which is still in the discussion stage, will serve as the foundational document, and every ADA holder will have the opportunity to express their preferences by voting on-chain. This inclusive approach ensures that the Cardano community will play a pivotal role in the decisions that shape Cardano’s future.
Once CIP-1694 is confirmed and operational, the governance of Cardano will be in the hands of the community. This means the Constitution Committee, Delegated Representatives (DReps), Stake Pool Operators (SPOs), and ADA holders will collectively have the power to make proposals, present them for a vote, and, if successful, implement them.
The implementation of CIP-1694 could signal a potentially bullish future for ADA holders. As Cardano transitions into becoming the first decentralized blockchain protocol controlled and run by its community, the vision for a decentralized ecosystem running on open-source blockchain technology and governed by its community is set to become a reality.
This careful and inclusive approach ensures that the Cardano community, developers, projects, and other stakeholders have ample time to adjust. It also allows the Cardano ecosystem to correct any ideas that didn’t work as expected or implement other changes suggested during the trial.
The first body to oversee the governance of Cardano will be the Constitutional Committee. It will ensure the Cardano Constitution is followed and updated according to a set process. The Cardano Constitution itself will become the foundation of all future Cardano governance decisions and the primary tool used as the foundation of the Voltaire era.
In conclusion, EMURGO suggests that implementing CIP-1694 is a significant milestone for Cardano. It marks the beginning of a new era where the community will play a central role in shaping the future of the Cardano ecosystem. This transition to community-led governance could potentially lead to a bullish future for ADA holders as it signifies the maturation of the Cardano ecosystem and its readiness to embrace the principles of decentralization fully.
CIP-1694 is a discussion proposal for the Cardano community about on-chain governance to shape a sustainable future for Cardano and bring another major upgrade to the network.
🧵Let’s dissect #CIP1694 and see what it means for Cardano ADA holders! pic.twitter.com/u1r3t86KQN
— EMURGO (@emurgo_io) June 1, 2023
Featured Image Credit: Photo / illustration by “Traxer” via Unsplash
Read the full article here