Developers of the Cardano have rolled out a series of significant improvements that is aimed at scaling up the layer-1 blockchain as well as the decentralized applications [dApps] built on it.
The so-called CIP-1694, or Cardano Improvement Proposal, is one of these. This invention, created in collaboration with Cardano’s creator Charles Hoskinson, is a system for on-chain governance that will serve as a bridge to ADA’s entry into the Voltaire phase.
The plan, which was initially conceived by ADA developer Jared Cordouan in late November, is currently up for a vote. Hoskinson explained that Voltaire itself is meant to be the most recent step in the evolution of the Cardano network and to put the decentralized decision-making process in motion.
The creation of a price index for Cardano native tokens by the dcSpark team is the second significant recent breakthrough. The index is intended to be deployable locally and without the aid of a third party or API. For perspective, there are presently more than 7 million native tokens on the network.
The three largest Cardano decentralized exchanges by total value locked namely Minswap, WingRiders, and SundaeSwap already support the index.
Hoskinson who also heads the Input Output [IO] recently emphasized that cryptocurrency requires strong governance to avoid the repetition of the FTX exchange.
Cardano Founder Talks About How Voltaire Can Avoid FTX-Like Situation
Hoskinson spoke extensively about Voltaire, the governance phase of Cardano, during his keynote address at IO ScotFest.
Citing the failures of FTX as an example, he commented,
“Crypto didn’t fail. No cryptocurrencies went down. No blockchain suddenly stopped making blocks. No DEX stopped trading. Humans yet again proved humans are bad at being honest, credible, and moral.”
Depriving daily operations of the human element and replacing it with a protocol that ensures fairness and integrity requires a set of governance rules.
Hoskinson claimed that in figuring out what makes good government, he put representation and consent first.
This was taken into account when the research wing IO published Cardano Improvement Proposal or CIP 1694 on Github, which extended the initial governance architecture from the Shelley phase to ramp up the decentralized decision-making process.
The idea for a constitution to codify guiding principles and preserve the project’s ethos on the blockchain is one of the proposed upgrades, along with active on-chain engagement and improved treasury movement transparency.