Cardano's Plomin hard fork is about to go live, marking a milestone in the decentralization of this blockchain network.
The Cardano ecosystem is at a crucial moment with the upcoming Plomin upgrade, which is scheduled to be implemented in late January as a hard fork on the network. This upgrade represents a historic milestone in the evolution of this blockchain, establishing a decisive step towards full Cardano autonomy.
Plomin will remove Cardano’s dependence on a central authority and cement the network’s position as one of the most decentralized blockchains on the market.
But what does Plomin really mean for Cardano and its community? Could this event boost the ADA price, Cardano’s native cryptocurrency, to overtake competitors like Solana in terms of market capitalization? We look at the key details and implications of this important update.
Plomin: A step towards decentralized governance
The Plomin hard fork is the second phase of the upgrade Chang, which began in September 2024. While Chang laid the groundwork for decentralized governance, Plomin will take this process to its fullest expression. His main goal is to implement fully decentralized governance on the Cardano network, removing the need for a central authority to make key decisions about the protocol.
Plomin is described in the Cardano Improvement Proposal (CIP-1694), a document that establishes a framework for community governance. If this upgrade is successfully implemented, Cardano will become the first blockchain protocol to operate fully autonomously, without the intervention of a central team, the document states.
The voting process: A tiered model
One of the highlights of Plomin is its voting process, which actively involves the Cardano community. For the hard fork to be approved, it requires the backing of two key groups: the Stake Pool Operators (SPO) and the Intersect Constitutional Committee (ICC).
The voting process is taking place in several rounds, with staggered deadlines culminating on January 29th of this year. So far, support has been overwhelming: of the 213 SPOs that have voted, 209 have backed the upgrade. However, this only represents 17% of the total ADA stake, so there is still some way to go to reach the minimum 51% threshold required for its implementation.
With this phased approach, Cardano is not only ensuring that its community is engaged in a democratic process but also allowing it to gradually adapt to the upcoming changes on the network. Furthermore, this process reflects the protocol’s commitment to transparency and inclusion in the blockchain ecosystem.
Therefore, the implementation of Plomin is not just a technical change, but represents a cultural change in the Cardano ecosystem. In addition, Plomin is also laying the groundwork for future upgrades and improvements to the network by allowing the community to make key decisions for its development.
The impact of Plomin on the price of ADA
The cryptocurrency market has always been sensitive to major technical events, and Plomin is no exception. Although ADA’s price has seen some volatility in recent weeks, showing a 14% drop over the past 30 days, analysts predict that the successful implementation of this upgrade could propel the cryptocurrency to new all-time highs.
Source: Bit2Me
ADA is currently trading around $0,94, with a trading volume of $1.350 billion over the past 24 hours. Technical indicators suggest that if a bullish pennant pattern is confirmed, the price of ADA could reach $1,85, which would represent a 100% increase from current levels.
However, to surpass other major cryptocurrencies such as Dogecoin and Solana in terms of market cap, Cardano would need to attract a larger number of developers and users to its ecosystem. Although Solana has a market cap almost three times that of Cardano, the network's focus on decentralization and community governance could be a long-term differentiating factor.
Currently, several decentralized applications (dApps) and exchanges are already actively preparing for this update.
Finally, while Cardano is not the only blockchain looking to implement a decentralized governance model, its implementation is different and distinct from other networks, such as Ethereum, Polkadot, and Avalanche, due to its meticulous and gradual approach. Cardano’s developers have not rushed into building the network or implementing new changes. Instead, this team has prioritized scientific research and rigorous development from the beginning, which has allowed them to avoid many of the problems that have plagued other blockchains, such as security and scalability flaws.
In short, Plomin will mark the beginning of a new chapter for Cardano, removing the dependency on a central authority and empowering the community to move towards decentralization.
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