This upgrade empowers ADA holders with direct voting rights on crucial blockchain decisions, including protocol changes, treasury allocations, and future upgrades.

Scheduled to go live today, the Plomin hard fork represents a pivotal step in Cardano’s long-term roadmap toward decentralized decision-making. With this implementation, the blockchain moves beyond its previous governance model, granting stakeholders increased influence over its evolution.

The Cardano Foundation, the non-profit organization supporting the project, has confirmed the network’s readiness for transition. The foundation emphasized that the upgrade will introduce a more democratic framework, ensuring that ADA holders have a say in protocol adjustments, treasury management, and system upgrades.

The Governance Framework and Stakeholder Participation

The transition is not automatic—stake pool operators (SPOs) played a critical role in the approval process. For the Plomin hard fork to proceed, at least 51% of SPOs needed to vote in favor of the upgrade. This threshold was surpassed, with nearly 80% of nodes already upgraded to the latest version ahead of the official implementation.

Additionally, the network’s Interim Constitutional Committee (ICC) reviewed the governance action, confirming that it met all constitutional and procedural requirements. This approval paves the way for Cardano’s governance framework to include decentralized representatives (DReps), who will now participate in key decision-making processes.

Key Changes Introduced by the Hard Fork

The Plomin hard fork integrates several governance enhancements designed to increase transparency and decentralization. These include the activation of all seven governance actions outlined in the Cardano Improvement Proposal CIP-1694. Notably, ADA holders can now vote on treasury withdrawals, constitutional amendments, and votes of no confidence.

Another significant change involves staking reward withdrawals. Moving forward, these withdrawals can only be made by accounts that delegate to a DRep, reinforcing the decentralized governance framework. This modification aligns with Cardano’s broader goal of establishing a self-sustaining, community-driven ecosystem.

Market Reactions and Future Outlook

ADA price has struggled, Source: BNC

Despite the importance of this transition, ADA’s price has struggled to gain momentum.

The token has seen a decline in recent days, trading around $0.91 at the time of writing. While some analysts anticipate a potential price breakout, current market sentiment remains cautious. It’s a sign that the market remains distracted by the resilience of Bitcoin, the potential of XRP, and the appeal of Dogecoin, while other alt coins remain stagnant in comparison. However, if a Cardano ETF is approved, then the price news of ADA could swiftly turn around.