Cardano Upgrade Plomin Enables Complete Self-Management for ADA

Cardano is celebrating a milestone: With the Plonim upgrade, responsibility for the ecosystem has been fully transferred into the hands of those who own ADA.

This self-governance was what Cardano had always strived for

A good seven years after Cardano (ADA) made its stock market debut, a new era is dawning for the altcoin: the Plomin upgrade was successfully activated overnight, as the Cardano Foundation proudly announced via X.

This means that from now on, ADA owners will be able to vote on all important issues relating to Cardano, from the use of reserves to personnel matters and future strategies. In the crypto scene, this form of self-administration is called DAO (Decentralized Autonomous Organization) and Cardano is now the first major cryptocurrency to put such a concept into practice.

The price curve of ADA, however, did not react noticeably to the groundbreaking upgrade Plonim. Cardano is trading just under 1 US dollar, far from the highs of over 3 US dollars reached in 2021. But even when the community prepared the upgrade with a Cardano constitutional convention in December, there was no reaction for ADA on the crypto exchanges.

Cardano DAO more successful than elsewhere?

So a fundamental question remains for investors: Is ADA more valuable as a ballot in the Cardano self-administration than in the times when founder Charles Hoskinson and the crypto company Input Output were in charge? The DAO idea has not necessarily proven successful for smaller crypto projects, voter turnout has fallen short of expectations and oversized voting blocs in the hands of investors, founders and whales often guarantee blocking minorities or even majorities that are easy to organize. The typical ADA small investor could soon lose interest in regularly dealing with referendums whose results seem pre-programmed.

But for supporters of classic crypto concepts, Cardano is now a beacon of decentralization. The idea of ​​combining crypto like ADA with the purpose of governance tokens is fascinating: grassroots democracy and swarm intelligence could prove to be more efficient and innovative than hierarchical systems. Around 35 billion in market capitalization currently gathers behind Cardano, which is roughly equivalent to Berlin’s annual budget.

Conclusion: Cardano starts self-management – ​​experiment or path to salvation?

ADA has broken free of its price lethargy thanks to Donald Trump’s election victory in November and has since recorded a gain of around 300 percent. But Cardano is primarily perceived in the USA as a US cryptocurrency and is hoping for an early approval of ADA ETFs.

But that does not dispel the recurring criticism of Cardano that ADA lacks monetary uses. The self-administration must now deal with this problem and it will be exciting to see how ADA fares when investors themselves vote on what should happen next with Cardano.

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(Featured image by Traxer via Unsplash)

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