Input Output Global Breaks Silence On Cardano Constitution Governance Action

Input Output Global (IOG), the main developer behind the Cardano blockchain, has provided insights into its Constitutional transition.

IOG confirmed that the blockchain’s Interim Constitution has transitioned to the Cardano Constitution.

The Cardano Constitutional Voting and IOG Rationale

Input Output Global disclosed that its Interim Constitutional Council (ICC) voted ‘Yes’ for the Governance Action.

Notably, all seven members of the Council unanimously supported the Cardano Constitution, which will replace the Interim Constitution.

IOG shared a snapshot of the voting published onchain, which showed an approval threshold of 66.67%.

Additionally, IOG highlighted the rationale of the proposed governance action and identified six criteria behind the first post-interim constitution.

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The first section of the rationale revealed several global workshops for ADA holders to discuss Articles of a final constitution, held in the second half of 2024.

Per the second section in the Governance Action rationale, workshops were distributed in 50 countries.

The idea is to capture the breadth of sentiment in the Cardano community.

As disclosed in the third section, 63 voting delegates and 63 alternates were elected in these workshops to participate in a Constitutional Convention.

Each voting delegate had an equal vote to participate in the Constitutional Convention.

In section four, delegates participated in the Constitutional Convention held in December 2024.

At the convention, delegates approved the final Constitution. 95% of the voting delegates voted in favor of the final constitution, above the required vote threshold.

Finally, delegates submitted the Final Constitution as a governance action under CIP-1694 before January 31, 2025.

Implication for the Protocol

The transition from the Interim Constitution to the Cardano Constitution holds implications for the blockchain.

First, the transition provides a structured process for electing a permanent Constitutional Committee with defined terms and responsibilities.

The Cardano community will be solely responsible for electing the committee.

This will ensure that community members are part of key governance decisions in the Cardano network.

Also, the transition will help prevent any single entity from exerting disproportionate influence over the blockchain’s future.

Furthermore, the Cardano Constitution will be key in defining specific rules and guardrails essential for the protocol’s security and stability.

Another major implication is that the new Constitution will specify voting mechanisms, stakeholder roles, and governance procedures.

This will help rectify any likely clarity challenges in advance.

Cardano Price Outlook

The ongoing discussion in the Cardano ecosystem has visibly impacted the price of the protocol’s native asset, ADA.

While major cryptocurrencies are currently in the red, ADA is among the few outliers in an uptrend.

At press time, ADA price was trading at $0.8090, up 2.4% over the past 24 hours, according market data.

The market capitalization is pegged at $28.46 billion, and the trading volume is $801 million. The latest ADA surge coincides with increased whale activities.

Notably, wallets holding over 1 Million ADA began a consistent accumulation phase in November 2023.

During this period, these large investors added 1.41 Billion ADA, representing 2.35% of the total circulating supply.

Meanwhile, market analysts claim Cardano’s price is showing signs of repeating its historical rally patterns.

They cited previous cycles where ADA delivered gains of up to 300%.

The analysts believe ADA is poised to see a major boost, targeting $2.50 in the coming months.