Bitcoin‘s price made a strong start to December, continuing to close above $38,000 in an exciting fashion. BTC, having tested $39,000 hours ago, draws attention for new peaks. While cumulative volume is increasing, there’s voting excitement for Cardano, one of the top 10 cryptocurrencies. What does this vote mean for ADA Coin?
The community’s say in cryptocurrency projects is preserved through such votes. Decentralization must be sustained by a fair distribution of supply, as large wallet influences in such votes contradict the spirit of cryptocurrency. We have seen this in many DeFi initiatives. Cardano has not performed as expected to date, but the so-called Cardano Ballot or Improvement Proposal-1694 could change the situation.
The Cardano community’s vote will end on December 11, and ADA staking community members will declare their intentions in the non-binding proposal. The question that voters need to answer is whether Cardano should continue working on the minimum viable on-chain governance.
The Cardano Foundation, supported by Input Output Global and Intersect, launched a new test network called SanchoNet in August. SanchoNet, a test network for governance features, serves one of the network’s ultimate goals: decentralization.
The Future of ADA Coin
The essence of cryptocurrency is a network governance mechanism that is far from traditional corporate management. However, the fate of most ventures in the crypto industry is tied to the words of a few top-level individuals. If Cardano wants to maintain its presence in the long term, it must fulfill the necessary decentralized governance.
The team had included this in their roadmap long ago, and this phase, known as Voltaire, aims to hand over governance mechanisms and Cardano Treasury management to the community. If the last vote, seen as a declaration of intent, overwhelmingly approves this goal, we might see ADA Coin’s price positively diverging during the process.
The US government has declared that so-called decentralized structures are actually managed by a few actors and that they will be targeted. Many protocols and blockchains are exploring ways to transition to full decentralization for this very reason. Most recently, DYDX took concrete steps in this direction and saw its price significantly increase.
- Cardano’s new vote may redefine ADA’s future.
- Decentralized governance remains a critical factor.
- Community influence is key in Cardano’s evolution.