Cardano Implements Full On-Chain Voting Framework
Cardano has transitioned to full on-chain governance, marking the end of its Voltaire era. The transformation included the election of the first community-led Constitutional Committee, following CIP-1694 guidelines, which formally ended the governance control of founding entities (IOG, EMURGO, and the Cardano Foundation). The network launched a smart contract–based Treasury for automated and transparent fund management, overseen by a Supervisory Committee composed of independent entities. In its first large-scale community-approved vote, 96 million ADA was allocated to fund upgrades to core projects (Ouroboros Leios, Hydra, and Mithril), marking the first instance of the network’s development being financed directly through on-chain voting. Cardano's governance now operates with a decentralized separation of powers, where every ADA holder can influence protocol evolution.
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Cardano Completes Transition to On-Chain Governance
Cardano has successfully transitioned to full on-chain governance with the election of a community-led Constitutional Committee. This marks a significant milestone in the network's history, as governance is now entirely managed by the community and powered by smart contracts. The changes signal the conclusion of the Voltaire era, the final stage of Cardano's roadmap, focused on decentralization and community control over ecosystem funds and decision-making.
Introduction of the Constitutional Committee and Voting System
The transformation began with the election of the first Constitutional Committee (CC) in September. Composed entirely of community-led organizations like the Cardano Atlantic Council, Tingvard, and the Eastern Council, the CC was elected publicly and verifiably under the guidelines of CIP-1694. The voting required explicit majorities: 67% from Delegated Representatives (DReps) and 51% from Stake Pool Operators (SPOs). With the committee taking office, foundational entities including IOG, EMURGO, and the Cardano Foundation formally stepped away from their governance roles.
Launch of Smart Contract-Based Treasury System
In parallel, a smart contract–powered Treasury was introduced to revolutionize community fund allocation by replacing administrative management with transparent, auditable logic. Each withdrawal requires multiple signatures and constitutional approval before execution. Oversight is handled by a Supervisory Committee, which includes five independent entities: Sundae Labs, Xerberus, NMKR, DQuadrant, and the Cardano Foundation. Importantly, the Supervisory Committee focuses solely on verifying transactions without engaging in political decision-making.
Testing and First Large-Scale Fund Allocation
The system was thoroughly tested in July when Intersect submitted 39 withdrawal requests for maintenance and infrastructure funding. Payments were executed in under 36 hours, demonstrating that a decentralized governance model can deliver efficiency comparable to centralized systems while maintaining enhanced transparency. By August, the community approved an unprecedented allocation of 96 million ADA (approximately $71 million) to upgrade Ouroboros Leios, Hydra, and Mithril. This marked the first time that Cardano's core development was directly financed through community vote rather than the founders' treasury.
A New Governance Structure: Separation of Powers
Cardano's governance system now incorporates a formal separation of powers, with distinct roles for DReps (legislative), SPOs (executive), and the Constitutional Committee (judicial). This shift moves Cardano away from a foundation-led model to a self-governing political system, where every ADA holder has the power to influence the network's evolution. These changes signify a landmark moment for blockchain governance, setting a new benchmark for decentralization and community empowerment.