Who truly holds power on Cardano? Governance, us, and our ADA

Introduction

Cardano is a decentralized blockchain that has structured its evolution into five eras: Byron, Shelley, Goguen, Basho and Voltaire. The Voltaire era, being the last one, is the phase during which Cardano planned to make its governance fully decentralized.

It is in 2023 that Cardano was ready to implement this decentralized governance, after ensuring that the missions of the other eras were achieved: ADA token transactions, staking, smart contracts, dApps integration as well as interoperability. This decentralized governance comes from CIP-1694 (Cardano Improvement Proposal)

The CIP-1694 laid the foundations of Cardano’s decentralized governance by introducing a tricameral model composed of the Constitutional Committee, DReps and SPOs. It also defined seven types of governance actions, the principle of “one lovelace = one vote”, as well as the ratification rules required for each action. This framework allows any ADA holder to submit a proposal or participate in voting, directly or through delegation.

Intersect MBO was then chosen as a member-based organization of the Cardano ecosystem to support the implementation of on-chain governance.

But why this governance? The answer is simple: Cardano is now in an era where ADA holders decide everything happening in the ecosystem — whether it is the committees that run Intersect or the different Cardano governance actions, including treasury management.

While writing this article, I realized that yes, many people already understand Cardano governance, but others do not participate not because they are unable, but rather because they do not know how it works or how to get involved. This is my reason for writing these lines.

Before we start, here is the essential difference between the two pillars of Cardano governance:

On-Chain Governance Off-Chain Governance
Takes place on the Cardano blockchain Takes place outside the blockchain
DReps, SPOs and CC vote officially via on-chain transactions Discussions, debates, coordination
Actions recorded in the immutable ledger Forums, Discord, meetings
Result: decisions executed automatically by the protocol Result: consensus, improved proposals

Both are complementary and essential. Off-chain governance prepares decisions, while on-chain governance formalizes and executes them.


First part: On-Chain Governance

On-chain governance is the official and technical core of Cardano decentralization. It is on the blockchain that DReps, SPOs and the Constitutional Committee express their votes, that thresholds are verified, and that decisions are executed automatically by the protocol.


1. What is a governance action?

A governance action is a formal proposal submitted on the Cardano blockchain by an ADA holder to modify, approve or record something concerning the network. It is the fundamental tool that allows the community to control and guide the future of Cardano.

To submit a governance action: Submitting Governance Actions on Cardano | Cardano Developer Portal
Required deposit: To submit a governance action, you must provide a refundable deposit of 100,000 ADA. This deposit is returned if the action is adopted or if it expires without being voted on.


1.1. The 7 types of governance actions

Action Description Required vote
Motion of No-Confidence Declaration of no confidence in the Constitutional Committee DReps + SPOs
New Constitutional Committee Change of composition or thresholds of the CC DReps + SPOs
Update to the Constitution Modification of the Cardano Constitution DReps + CC
Hard-Fork Initiation Triggering a major network upgrade DReps + SPOs + CC
Protocol Parameter Changes Modification of protocol parameters DReps + CC
Treasury Withdrawals Withdrawal of treasury funds to fund projects DReps + CC
Info Action Recording information without on-chain effect All roles

Source: Governance Actions | Cardano Developer Portal


2. The three on-chain voting actors

The tricameral model of Cardano distributes voting power across three distinct roles. They are the ones who vote on-chain via blockchain transactions:


2.1. DReps (Delegated Representatives)

Who are they? Representatives elected by ADA holders. Any ADA holder can become a DRep.

What do they vote on? All governance actions, except some purely technical actions reserved for SPOs.

How are they chosen? ADA holders delegate their voting power to them. The more delegation a DRep receives, the higher their voting weight (“one lovelace = one vote”).

How to participate?


2.2. SPOs (Stake Pool Operators)

Who are they? Operators of staking pools that produce blocks on the network.

What do they vote on? Mainly technical governance actions: hard fork, motion of no-confidence, new constitutional committee.

How to become an SPO? https://developers.cardano.org/docs/operate-a-stake-pool/


2.3. The Constitutional Committee (CC)

Who are they? A group of 7 members elected by the community for a one-year mandate (4 seats renewed in September 2026).

What do they vote on? Constitutionality of actions (Yes/No/Abstain), not their merit.

Cardano Constitution: https://docs.intersectmbo.org/archive/cardano-governance-archive/cardano-constitution/read-the-cardano-constitution

How to become a CC member? Application during annual elections organized by Intersect, with mandatory technical proofs, then election by DReps via the Ekklesia platform.

More info: The 2026 Constitutional Committee Elections


3. The GovTool platform

Cardano governance takes place on a platform called GovTool:

Environment Link Usage
Mainnet (real ADA) https://gov.tools/ Real votes
Testnet Preview https://preview.gov.tools/ Training
Faucet for test ADA https://docs.cardano.org/cardano-testnets/tools/faucet Get fake ADA

Second part: Off-Chain Governance

Off-chain governance is the space where ideas are born, debated and refined before becoming official on-chain votes. Without it, on-chain governance would be just a voting box without debate or preparation. This is where the community builds the consensus that guides on-chain decisions.


1. Joining Intersect committees

The Intersect committees form the backbone of off-chain work. Their mission is twofold: to prepare future decisions and to coordinate ecosystem participants.
It is through their work that recommendations emerge which, after maturation, are transformed into governance actions submitted for on-chain voting.


The 8 committees

Committee Main Role Seats in April 2026 Elections Total Members
Intersect Steering Committee (ISC) Strategic coordination and oversight of committees; issues recommendations to the Board 2 10
Cardano Budget Committee (CBC) Prepares and oversees the annual budgeting process 5 10
Cardano Civics Committee Makes governance accessible, fair, and transparent 5 10
Technical Steering Committee (TSC) Provides technical recommendations for development 5 10
Open Source Committee (OSC) Supports growth through open-source decisions 5 10
Product Committee (CPC) Facilitates shared product vision and strategy 5 10
Membership and Community Committee (MCC) Develops and supports member participation 5 10
Growth and Marketing Committee (GMC) Coordinates global marketing initiatives for Cardano 5 10

Why and how to join Intersect Committees?

Intersect committees represent a concrete opportunity to actively participate in Cardano governance. Unlike on-chain voting, which is open to all ADA holders, participation in Intersect committees is based on membership.


Membership requirements

Type of member Annual fee Details
Individual member $10 / year Payable in ADA equivalent to USD value
Organizational member $1,000 / year Payable in ADA, for companies or projects

Electoral cycle

  • Elections are held twice a year (usually in April and October)
  • Elected members serve a one-year mandate
  • Only Individual Intersect members (with paid membership) can vote or apply as candidates

How to prepare now

  • Become an Intersect member: Membership Dashboard Area
  • Stay informed: follow announcements on Discord and X to track application and election periods
  • Prepare your profile: each committee looks for specific expertise (technical, budgeting, community, product, governance, etc.)
  • Apply or vote during the next election cycle

2. Participating in Working Groups

Working groups are more specific and temporary collaboration spaces than committees. They focus on a particular topic and bring together community members around a specific issue related to governance, technology or ecosystem evolution.

These working groups are regularly created and dissolved depending on needs. They allow members to contribute directly on focused topics in a lighter and more flexible way than permanent committees.


How to participate

  • Join Intersect Discord
  • Check active working group announcements
  • Go to dedicated channels (prefixed #wg-)
  • Attend weekly or occasional meetings

Link: https://discord.gg/intersectmbo


3. Providing feedback on treasury withdrawal proposals

Before a treasury withdrawal request is submitted on-chain, it is discussed off-chain for improvement.


How to do it:

  1. Check active proposals on Intersect’s budget platform;
  2. Read documents, budgets and justifications
  3. Post your questions, suggestions or objections on Discord or forums
  4. Engage directly with proposers

Best practices

Be constructive, propose concrete alternatives, identify risks.


4. Commenting on governance actions

Any governance action can be commented off-chain before and during the voting period.


Before submission

Participate in discussions on the Cardano forum or Intersect Discord.


During voting period

Use GovTool to see ongoing actions and discuss with your DRep.

Link: https://gov.tools/governance_actions


5. Summary of off-chain activities

Activity Where to start Frequency
Observe a committee Intersect Discord Weekly
Join a working group #wg-* Discord channels Weekly
Comment on budget Intersect site + Discord Cycles
Comment on GovTool actions Discord + GovTool Continuous

Start here: https://www.intersectmbo.org/join


General conclusion

Cardano governance is based on a balance between two complementary pillars:

  • On-chain governance: DReps, SPOs and the Constitutional Committee vote officially via blockchain transactions. Their votes are irreversible and ratified decisions are executed automatically by the protocol.

  • Off-chain governance: discussions, coordination and preparation of decisions take place on Discord, forums, working groups and Intersect committees. This is where proposals are debated and improved before becoming formal actions.

Every ADA holder can actively participate in the future of the ecosystem, whether through on-chain voting via DReps, delegation of voting power, participation in Intersect committees, involvement in working groups, or simply by commenting on treasury proposals and governance actions.

Do not wait: delegate your ADA to a DRep, join a working group on Discord, or apply for upcoming elections. Your voice matters, and every participation strengthens the resilience and legitimacy of the Cardano network.


Note

This article is based on my personal research. If any information seems incorrect or outdated, please let me know in the comments. Knowledge is also built through complementarity.


Sources

2 Likes

clear, well structured, and very educational.

I really appreciated how you explained both on-chain and off-chain governance in a way that beginners and experienced community members can understand. This kind of content helps more people realize that Cardano governance is for everyone, not only experts.

Great work and thank you for your good contribution for the ecosystem

1 Like