Cardano Launches On-Chain Governance and Constitution in Messari Q1 2025 Report

Cardano Community highlighted the ADA on-chain governance and constitution in the Messari Q1 2025 report. They said, “The Constitution is live, and community governance has begun with active DReps now in the process.” On February 24, 2025, the blockchain enacted its Constitution. Moreover, marking the beginning of real-time, community-driven governance under CIP-1694. This shift represents the transition into Cardano’s final development stage aimed at full self-sustainability. With early Delegate Representatives (DReps) now actively participating in the ADA community development. This pushed Cardano beyond theory into real, on-chain decision-making. 

Decentralized Governance Goes Live Under CIP-1694

The enactment of the Cardano Constitution brings into effect the CIP-1694 (Cardano Improvement Proposal) framework.  This formalizes how the community can propose, debate, and vote on changes. Under this model, DReps, or Delegate Representatives, are empowered to vote on behalf of ADA holders. Their role ensures that decision-making is accessible, distributed, and efficient.

Stake Pool Operators (SPOs) and the Constitutional Committee are supporting a new governance layer. This provides additional checks and balances. SPOs contribute technical insights and ensure network reliability. The Committee offers oversight to maintain the integrity of the constitutional process. This structure makes Cardano’s governance a decentralized and accountable platform.

This governance launch is a defining moment in the Voltaire era, the final phase of Cardano’s long-term development roadmap. Voltaire focuses on enabling the network to evolve without centralized intervention. Through a constitution, voting mechanisms, and a treasury system, Cardano aims to build a blockchain. For the first time, Cardano’s future lies directly in the hands of its users. The launch of CIP-1694 offers a clear structure for how proposals are introduced and adopted, pushing the platform closer to its vision of a truly decentralized ecosystem.

ADA Q1 2025 Report: Metrics Show Growth and Governance Progress

According to Messari’s ADA Q1 2025 report, Cardano’s ecosystem recorded notable changes. The stablecoin market cap surged over 30%, reaching $30.2 million. This growth was driven by the launch of USDA and the rising use of USDM, two key stablecoins within the Cardano network. 

Source: Messari’s X Post On May 21, 2025.

Another key metric, the 13% rise in DeFi diversity score, shows broader participation across decentralized applications. Meanwhile, the 5% increase in Cardano Treasury signals healthy reserves that can be used to fund future community proposals. The report also pointed to a dip in network activity. 28% drop in transactions and fees contrasts with the progress made in governance and treasury strength. Despite this, the network’s focus on long-term maturity and sustainability remains evident.

Why This Matters for Cardano and the Wider Blockchain Space

Cardano is now among the first major blockchains to implement full on-chain governance. With active DReps already making decisions, the community has entered a new phase. The successful rollout of decentralized governance could serve as a blueprint for other projects. It offers a model for achieving long-term sustainability through community participation.

For Cardano, this shift reflects years of methodical development and testing. For the broader ecosystem, this shows a big change in how people can run blockchains themselves. The clear mechanics of CIP-1694, coupled with early adoption, prove that decentralized governance is no longer theoretical.

Cardano is now moving deeper into the Voltaire era with a clear focus on structured and responsible decentralization. This approach may inspire similar changes across other blockchain projects. The Messari ADA Q1 2025 report highlights not a governance milestone but a key step in Cardano’s path toward full self-governance.

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