- New tri-cameral governance system divides decision-making among SPOs, DReps, and a Constitutional Committee to streamline operations.
- Delegate Representatives will now vote on treasury allocations and technical improvements, bridging ADA holders with governance processes.
- Pending final ratification in December 2024, the constitution promises to shift control from founding entities to community members.
In early December 2024, the Cardano community overwhelmingly approved a new constitution with 95% of votes in favor. This significant move was made during the Cardano Constitutional Convention held in Buenos Aires, Argentina, and Nairobi, Kenya, organized by Intersetc, a community group comprised of Cardano members.
This approval marks a pivotal development in the governance of the Cardano network, aiming to enhance decentralization and boost participation among ADA holders, the native token of the network.
Cardano's Constitutional Convention – Day 3
In the remote chance you missed the action yesterday, delegates approved the Constitution text the community have been poring over for many months.
We've now published the delegate-approved Constitution here →…
— Intersect (@IntersectMBO) December 6, 2024
The newly approved constitutional framework introduces a tri-cameral system of governance that divides decision-making among three main groups: Stake Pool Operators (SPOs), Delegate Representatives (DReps), and a Constitutional Committee (CC).
This structure is built upon the foundations laid by Cardano Improvement Proposal 1694 (CIP-1694) in November 2022, which initially introduced an Interim Constitution.
Under this new governance model, SPOs play a technical role, ensuring the validation and processing of transactions while maintaining network stability. They also possess the authority to vote on protocol updates and governance rule changes.
On the other hand, DReps serve as intermediaries between the ADA holder community and the decision-making processes. Their responsibilities include voting on treasury fund allocation initiatives and technical improvement proposals, resolving disputes within the community, and making decisions on significant projects.
Furthermore, the DReps are tasked with evaluating and voting on projects seeking funding, including technological developments, educational programs, and marketing initiatives. Meanwhile, the Constitutional Committee’s primary mission is to ensure the system’s integrity and uphold the principles set out in the Constitution.
This new governance format signifies a more collaborative decision-making process within the Cardano network, giving ADA holders a more significant role. By delegating their votes to DReps or participating directly in key consultations, users can now directly influence the decisions shaping the future of Cardano. This shift aims to reduce the dependency on founding entities in network governance.
Previously, Cardano’s governance was dominated by founding entities like Input Output Global (IOHK), Cardano Foundation, and EMURGO, which made critical decisions about protocol development and the network’s future.
Although this model facilitated initial development, it limited direct community participation in decision-making.
The approval of the new constitution concludes the transition period toward decentralized governance initiated by CIP-1694 during the Voltaire Era, the final stage of Cardano’s roadmap focused on network sustainability and community leadership.
