In a recent video titled “Next Steps Post-Chang,” Charles Hoskinson, Co-Founder and CEO of IOG, provided a detailed update on the Cardano ecosystem’s development following the Chang roadmap milestone. Hoskinson outlined the current phase of governance, known as the bootstrap phase, which is essential for activating full governance in the Cardano network.
Hoskinson began by explaining that the Cardano governance model is entering a pivotal stage, with the bootstrapping phase currently active. This phase is crucial for getting all participants, including delegated ADA holders, the Constitutional Committee, stake pool operators (SPOs), and other governance roles, familiar with the process before they fully activate Cardano’s decentralized governance. Hoskinson highlighted that the current stage is critical for ensuring the smooth transition from centralized governance into a fully operational decentralized model, referred to as Chang plus one. He estimated that the full transition would occur in about 90 days, with full governance expected around December 2024.
During this bootstrap phase, only a limited set of governance actions can be taken. Hoskinson detailed the roles and actions available, which include initiating hard forks and protocol parameter changes but exclude actions like treasury withdrawals and updating the Constitution. These restrictions are designed to give participants time to familiarize themselves with the governance model before full governance is enabled.
The next major milestone is Chang plus one, after which the Cardano government will fully turn on, allowing all participants to execute more complex governance actions. According to Hoskinson, this full governance implementation will also coincide with the ratification of a new Cardano Constitution. Workshops are already taking place across 50 countries, where delegates are discussing and shaping the draft of this Constitution. Hoskinson explained that these delegates, representing a global cross-section of the community, will convene in Argentina in December 2024 for a Constitutional Convention, where version one of the Constitution will be voted on and finalized.
In addition to the governance milestones, Hoskinson discussed the Cardano Treasury, which currently holds about $600 million worth of ADA. He presented two potential paths for managing these funds: either through treasury withdrawals on a case-by-case basis or through an annual budget. Hoskinson expressed a preference for the latter, advocating for a systematic approach where the budget is broken into categories such as development, marketing, research, and legal. He emphasized that this annual budgeting process would be more efficient for long-term strategy and planning.
Hoskinson also introduced the idea of creating a coalition of development companies, which will be tasked with leading the Cardano 2.0 vision. This coalition will include both small and large entities and will propose the development and research goals for the future, such as new node designs, improving scalability, and integrating technologies like rollups. He explained that this coalition would have a strong focus on accountability, with robust auditing and oversight mechanisms in place to ensure that projects are delivering on their promises.
Hoskinson hinted at the possibility of further developing marketing and branding initiatives for Cardano. He acknowledged that there has been significant interest in this area, and discussions are already taking place within the marketing and communication committees at Intersect. These committees are exploring new ways to grow Cardano’s global presence and increase user adoption.
On the subject of Catalyst, Cardano’s community-led innovation fund, Hoskinson said its future would depend on whether it is included in the proposed budget. If the community votes to fund Catalyst, it will continue to operate; if not, Catalyst may be sunsetted. He stressed that decisions like these are up to the delegated representatives (DS) and the Constitutional Committee, who will ultimately have the final say on the allocation of funds.
Hoskinson concluded by stressing the importance of aligning the budget process with Cardano’s long-term strategy, arguing that a cohesive strategy for 2025 and beyond cannot be achieved with fragmented treasury withdrawals. Instead, he urged the community to focus on creating an annual budget that reflects Cardano’s broader goals, ensuring the ecosystem can thrive in the years to come.
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