In a video update on Monday, Charles Hoskinson, the founder of Cardano, discussed the advancements and future steps for Cardano following the implementation of the Chang hard fork. Broadcasting from Colorado, Hoskinson provided a deep dive into the ongoing developments and the roadmap ahead, particularly focusing on the governance structure and the transitional phases that Cardano is set to undergo.

What’s Next For Cardano?

Hoskinson opened his discussion by emphasizing the current state of the Cardano blockchain in the bootstrap phase following the Chang hard fork. He detailed the significance of this phase as foundational for setting up the new governance structure under the Cardano Improvement Proposal (CIP) 1694, which has now been activated.

The Cardano founder explained that the governance framework introduced with the Chang gard fork involves multiple parties, including stake pool operators (SPOs), delegated ADA holders, and a new group known as the constitutional committee, which will play a crucial role in the governance process.

“The fledgling government is alive and well,” stated Hoskinson. He further explained the importance of this phase, noting, “We are in the bootstrap phase […] we will need to be careful about how we bootstrap this fledgling government.”

Hoskinson further discussed an upcoming hard fork, referred to as ‘Chang+1.’ This second part of the Chang hard fork is expected to occur within the next 90 days. This update is crucial as it will enhance and expand upon the governance mechanisms currently being put in place.

“So we have 90 days for Chang+1 and at that point Decentralized Representatives (DS) are on and we have a full Cardano government. […] Right now we’re in the bootstrap phase. People are registering DS and we’re going to see lots and lots and lots of them, basically getting activated and then after Chang+1 we will have a tripartite government,” Hoskinson explained.

He further revealed that the technical and administrative preparations are already underway to ensure a smooth transition to this next phase. He explained that Chang+1 is part of a broader strategy to fully decentralize governance of Cardano.

A significant focus of Hoskinson’s update was also on the constitutional convention scheduled to take place in Argentina in December. The event will feature delegates from over 50 countries which will gather to draft and vote on the first official constitution for Cardano.

“We’re all going to go to Argentina and those delegates are going to form a constitutional convention and that Constitutional Convention, […] they’re going to vote on a proposed version one constitution for Cardano. This will happen right around the same time that Chang+1 is coming online and […] the bootstrap phase is ending,” the Cardano founder elaborated.

In terms of governance and treasury management, Hoskinson discussed the intricate planning involved in managing the Cardano treasury, which holds approximately $600 million worth of ADA. He spoke about the need for careful and strategic allocation of these funds to support various developmental and operational activities within the Cardano ecosystem.

The approach discussed aims to involve the community in budgetary decisions through a governance model that allows for a systematic approach to funding. According to Hoskinson, there are two potential ways to run an on-chain treasury.

“We didn’t specify this in the CIP because it’s up to the on-chain government to decide. But you could just do treasury withdrawals and there’s kind of guardrails about how those work. You can just withdraw things as they come […]. The preferred way for anything at scale is to do an annual budget. You kind of break it into two stages, so an annual budget creates a pie graph and then each slice in the pie is for different things,” Hoskinson explained.

At press time, ADA traded at $0.3286.