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The system is defined by CIP-1694 and the Cardano Constitution. It is not a single referendum: influence depends on delegated lovelace, pool stake, or an individual CC member’s vote, depending on the body involved.
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What is CIP-1694?
CIP-1694 is the design for Cardano’s Voltaire-era on-chain governance. It defines governance actions, voting bodies, thresholds, delegation, and the process for ratifying and enacting decisions.
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A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Its central idea is separation of powers. DReps provide broad ada-holder representation, SPOs provide a stake-based view from the block-producing infrastructure, and the CC checks whether an action is constitutional. No one body controls every kind of proposal.
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The Constitution describes the arrangement this way: “Three independent voting bodies – DReps, SPOs, and the CC – participate in on-chain voting.” CIP-1694 DReps are a Cardano governance role; they should not be confused with Project Catalyst DReps, which belong to a different system.
How the three Cardano voting bodies differ
| Body | Who it represents | What determines influence | Scope of voting | Primary function |
|---|---|---|---|---|
| DReps | Ada holders who delegate voting power | Lovelace delegated to the DRep | All governance-action types | Policy approval and representation of ada-holder preferences |
| Stake-pool operators | Operators producing blocks | Pool stake under the action-specific SPO rule | No Confidence, Update Committee, Hard Fork Initiation, security-relevant parameter updates, and Info actions | Infrastructure and network-security approval |
| Constitutional Committee | Members elected to the constitutional oversight body | One vote per member | Constitutionality decisions, including the constitutional review of applicable actions and Info actions | Constitutional check rather than general policy-making |
Ada holders and DReps
The Constitution gives ada owners the right to participate in on-chain decision-making. An owner can register as a DRep, delegate voting rights to another registered DRep, or delegate to themselves. Delegation can be changed at any time.
A DRep’s voting power equals the lovelace delegated to that DRep. A DRep therefore does not receive one vote merely for being registered: the delegated amount is what gives the DRep influence. An ada holder who does not want to choose a representative can use one of CIP-1694’s predefined choices.
- Abstain: delegated stake is treated as non-participating and is removed from the active voting stake used for relevant thresholds.
- No Confidence: the delegated stake counts as Yes on No Confidence actions and as No on every other action, while remaining part of the active voting stake.
DReps must vote periodically to remain active. If a DRep becomes inactive, its delegated stake no longer counts toward active voting stake until the DRep is reactivated by voting or updating its certificate. This means a delegation can remain recorded while temporarily ceasing to contribute to the denominator used for DRep thresholds.
Stake-pool operators
SPOs are the operators of Cardano’s block-producing stake pools. Their votes are required for governance matters that directly affect network continuity or the constitutional leadership structure: No Confidence, Update Committee, Hard Fork Initiation, security-relevant protocol-parameter updates, and Info actions.
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SPO thresholds use a stake basis distinct from the DRep active-voting-stake denominator. For a hard fork, CIP-1694 specifies a percentage of the stake held by all pools. You should therefore avoid reading a DRep percentage and an SPO percentage as measurements of the same electorate.
The Constitutional Committee
The CC is the constitutional check. The Constitution limits it to judging the constitutionality of governance actions, including proposed or contemplated actions contained in Info actions. It is not a third chamber that approves ordinary policy on its own terms.
Each CC member has one vote. The official Cardano glossary describes the elected committee as a seven-member body. Seats are staggered, and committee changes occur through governance actions rather than through a permanent, unelected membership.
Committee composition and election status are time-sensitive. The glossary records that a 2025 community election filled all seven staggered seats. It also records a 2026 Update Committee action ratified in epoch 653 with 69.4% of DRep stake and 51.2% of stake-pool stake; the listed successors serve until epoch 799. Those figures describe that specific action and period, not a permanent threshold or a guarantee about the committee’s membership after later elections.
Which proposals need which votes?
CIP-1694 groups governance actions into eight broad categories. The required combination of bodies changes with the category, and some categories have special constitutional or infrastructure rules.
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| Governance-action category | DRep participation | SPO participation | CC role |
|---|---|---|---|
| No Confidence | Required under the action’s DRep rule | Required | Exception to the usual CC affirmation requirement |
| Update Committee | Required under the action’s DRep rule | Required | Exception to the usual CC affirmation requirement |
| New Constitution or Guardrails Script | Required | Not the general requirement for this category | Constitutional affirmation required |
| Hard Fork Initiation | Required | Required | Constitutional affirmation required |
| Protocol-parameter updates | Required | Added for security-relevant parameter changes | Constitutional affirmation where required by the action design |
| Treasury Withdrawal | Required | Not the general requirement for this category | Constitutional affirmation required |
| Info | Required; the CIP design specifies a 100% DRep threshold | Required; the CIP design specifies a 100% SPO threshold | May judge constitutionality, but Info actions have their own DRep and SPO rules |
The table describes the CIP-1694 design at the category level. Exact thresholds are governance parameters and can change through enacted protocol updates. Symbols such as P1, P3, or Q4 should not be treated as fixed percentages without checking the current protocol parameters.
How a Cardano governance action passes
1. An action is submitted on-chain
A governance action is recorded on-chain with its category, deposit and voting information. Examples include changing the committee, initiating a hard fork, changing protocol parameters, withdrawing treasury funds, proposing a constitutional change, or publishing an Info action.
2. The required bodies vote
DReps, SPOs and CC members vote only where the action category calls for their participation. A DRep vote represents the lovelace delegated to that DRep. An SPO vote is evaluated against the action’s pool-stake basis. A CC member contributes one committee vote.
3. Thresholds are evaluated at an epoch boundary
Ratification is checked at epoch boundaries rather than continuously at an arbitrary block. The relevant denominator matters: DRep calculations use active voting stake, while SPO calculations use the stake basis specified for that action.
The Constitution sets a notable constitutional-amendment floor: at least 65% of active voting stake is required unless a guardrail specifies another threshold. The CIP design also specifies 100% DRep and 100% SPO thresholds for Info actions. Other thresholds are parameterized, so the current protocol parameters must be consulted before interpreting a live vote.
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4. A ratified action is staged for enactment
If all required conditions are met, the action is ratified and staged for enactment at the next epoch boundary. Ratification is therefore not the same instant as execution.
No Confidence, Update Committee, constitutional changes and Hard Fork Initiation actions delay ratification of other actions until the first epoch after their enactment. An action that fails to ratify eventually expires, and its deposit is returned.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the thresholds mean in practice
Percentages in Cardano governance answer two different questions: how much support was cast, and how large the eligible denominator is. A high percentage of votes can still represent a different amount of stake depending on whether the denominator includes all eligible pool stake, active DRep stake, or only participating stake.
Abstain changes the DRep denominator by removing the delegated stake from active voting stake. No Confidence does not remove stake: it expresses a defined voting position, counting as Yes for a No Confidence action and No for other actions. An inactive DRep’s stake is also excluded from active voting stake until that DRep becomes active again.
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For a hard fork, the SPO requirement is based on stake held by all pools, as specified by CIP-1694. That is why a hard-fork result cannot be inferred by looking only at the number of pool operators who voted.
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How Cardano governance developed
| Date | Milestone |
|---|---|
| August 2024 | Chang bootstrap enabled DRep registration and ada-holder delegation. An interim constitution and interim CC operated while only limited governance actions were supported. |
| January 29, 2025, epoch 537 | The Plomin hard fork, protocol version 10.0, completed Conway governance capabilities, enabled the full set of governance actions and activated the DRep role for ada holders. |
| 2025–2026 | The elected CC operated through community elections, including the seven-seat 2025 election and the recorded 2026 successor election. |
How to delegate your ADA voting power
Participation requires a governance-compatible wallet and a current governance tool. Wallet and tool availability changes, so use the official Cardano governance overview and the wallet list linked from it when choosing an interface.
- Open a governance-compatible wallet. Confirm that the wallet supports CIP-1694 delegation and governance actions, not only ordinary staking.
- Choose your participation route. You can delegate to a registered DRep, register as a DRep, or delegate to yourself if you want to vote directly as a representative.
- Review the delegation transaction. Check the DRep identifier and the transaction details before signing. Delegation is an on-chain certificate, not a setting held only by the wallet interface.
- Change delegation when your preference changes. Ada holders may update their delegation at any time. A new certificate changes which DRep receives the voting power.
- Follow active governance actions. Review the action text, required bodies, applicable thresholds and the epoch in which ratification will be checked.
- If you are a DRep, remain active. Vote periodically or update your DRep certificate so your delegated stake continues to count toward active voting stake.
- Use a submission tool for a new action. Governance tools can guide submission, but the action still has to satisfy its category-specific voting and constitutional requirements.
Common mistakes and how to avoid them
- Confusing governance DReps with Catalyst DReps: CIP-1694’s DRep role belongs to Cardano’s constitutional, on-chain governance system.
- Assuming every action needs all three bodies: the matrix is action-specific. No Confidence and Update Committee actions are exceptions to the usual CC affirmation requirement, while security-relevant parameter changes add an SPO vote.
- Treating a parameter symbol as a permanent percentage: P1, P3 and Q4 identify governance parameters; their values can change.
- Using the wrong denominator: active DRep stake, all pool stake and committee-member votes are different units.
- Ignoring epoch timing: a successful vote is staged for a later epoch boundary, and some action categories delay other ratifications.
- Assuming a registered DRep is always active: inactivity removes the DRep’s delegated stake from active voting stake until reactivation.
- Expecting the CC to choose policy: its constitutional role is to judge whether an action aligns with the Constitution.
- Relying on an old committee roster: elections, successor terms and enacted constitutional versions can change the current picture.
Why the design matters to ADA holders
Cardano’s model gives ADA holders a way to participate without requiring every holder to study and vote on every proposal personally. Delegation concentrates voting power in a representative while preserving the ability to change that choice. Self-delegation provides a direct route for holders who want to evaluate actions themselves.
The separation between DReps, SPOs and the CC also makes the consequences of a proposal explicit. A treasury withdrawal is primarily a DRep-and-constitutional decision; a hard fork must clear DRep, SPO and CC requirements; and a security-sensitive parameter change brings the block-producing infrastructure into the vote. The result is more involved than a simple majority poll, but it connects each action to the group most directly responsible for its effects.
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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →For anyone asking “How does Cardano governance work?”, the practical answer is: identify the action category, identify the required bodies and denominators, check the current parameters, and follow the epoch-based ratification schedule. Your ADA can participate through delegation, direct DRep activity or the predefined Abstain and No Confidence choices.
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