Cardano has successfully activated its Plomin hard fork, marking a major milestone in the network’s journey toward full decentralized governance. The upgrade, which went live on January 29, 2025, enables ADA holders to vote on key governance actions, including parameter adjustments, treasury allocations, and future protocol upgrades. This transition places Cardano’s governance directly in the hands of its community, moving away from a foundation-led model.
Quick Take
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Cardano's Plomin hard fork activates, marking a shift to full decentralized governance.
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ADA holders now have direct voting power over protocol changes, treasury withdrawals, and future upgrades.
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The upgrade finalizes Cardano Improvement Proposal (CIP-1694), completing the transition to the Voltaire era.
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ADA price eyes a potential breakout towards $1.90 following the upgrade.
Cardano Transitions to Full Decentralized Governance
In an official statement, the Cardano Foundation emphasized the significance of the upgrade, stating:
“The Plomin hard fork takes effect, marking the transition to full decentralized governance. $ADA holders gain real voting power—on parameter changes, treasury withdrawals, hard forks, and the blockchain’s future.”
Cardano’s Plomin hard fork goes live | Source: X
This upgrade follows the Chang hard fork, implemented in September 2024, which laid the groundwork for decentralized decision-making. The Plomin hard fork builds upon this by fully implementing the governance mechanisms outlined in CIP-1694, a critical step in completing Cardano’s Voltaire era.
How Cardano's Governance Will Work Post-Plomin
Cardano’s moves to decentralized governance after Plomin hard fork | Source: Emurgo
With the Plomin upgrade, ADA holders now have two primary options for governance participation:
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Direct Voting – ADA holders can vote on proposals themselves.
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Delegated Representatives (DReps) – Users can delegate their voting power to DReps, who vote on governance actions on their behalf.
In addition, Stake Pool Operators (SPOs) retain a role in the governance process by validating upgrades and network changes. The hard fork required at least 51% of SPOs to approve the upgrade, and as of January 22, over 78% of Cardano’s network nodes had transitioned to the new version.
What’s Next in the Cardano Roadmap After the Plomin Hard Fork?
The implementation of full decentralized governance brings several key initiatives into focus for 2025:
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On-Chain Voting for the Cardano Constitution – The next step will be an official vote to ratify the Cardano Constitution, initially drafted in December 2024.
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Decentralized Treasury Management – The first formal Cardano treasury budget will be voted on by the community, deciding fund allocations for development and ecosystem growth.
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Scalability and Interoperability Enhancements – The Cardano Foundation and Input Output Global (IOG) have proposed future upgrades focused on network speed, enhanced smart contract functionality, and cross-chain interoperability with networks like Bitcoin and Ethereum.
ADA Price Outlook: Will the Hard Fork Trigger a Breakout?
ADA/USDT price chart | Source: KuCoin
Despite the long-anticipated governance upgrade, ADA’s price movement has remained cautious, currently trading around $0.91. However, technical analysis suggests a potential breakout to $1.90, driven by a symmetrical triangle pattern forming on ADA’s price chart.
A move above $0.962, the 50-day moving average, would confirm bullish momentum, potentially driving ADA’s value higher. Over the past year, ADA has already seen a 78% increase, outperforming Ethereum’s 35% annual gain but trailing Bitcoin’s 139% rally.
Cardano’s Future Outlook
With the governance transition complete, Cardano’s development will now be fully guided by its community. Upcoming discussions within the ecosystem will focus on:
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Enhancing DeFi capabilities on Cardano’s blockchain.
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Scaling the network for mass adoption.
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Potential partnerships, including a rumored collaboration with Chainlink for expanded stablecoin integration.
The successful activation of the Plomin hard fork signifies a major step forward for Cardano’s self-sustaining governance model. For ADA holders, this marks the beginning of a new era where their influence directly shapes the future of one of the most advanced blockchain ecosystems.
Stay tuned to KuCoin News for further updates on Cardano’s decentralized future and upcoming governance proposals.