ADA price is recovering after hovering around $0.25 for one month. The Cardano’s native token has fired up with a nearly 30% price surge since the advent of the New Year.
The hype around Cardano’s upcoming stablecoin DJED launch could be among the factors pushing ADA’s price forward. The news of Hoskinson’s new healthcare facility that would accept ADA as payment might have also contributed to the token’s mad surge.
ADA opened this week with almost a 10% increase in trading price, which has got Cardano’s founder, Charles Hoskinson, swelling with pride. Hoskinson took to Twitter and responded to comments about ADA’s skyrocketing price. He boasted that additional gains are coming with upcoming improvements on the Cardano Network.
According to Charles Hoskinson’s response tweet, the proposed CIP 1694 and the MBO will strengthen the Cardano community. The Voltaire upgrade would see millions of people collaborating for the growth and utility of ADA.
What Is CIP 1694?
The Cardano improvement proposal (CIP) 1694 seeks to bring Cardano into the Voltaire Era. The CIP 1694 upgrade is the bedrock for a decentralized decision-making system. Jared Corduan, a software engineering lead on Input Output Global, Cardano’s developer company, proposed its adoption and voting in November 2022.
The CIP aims to enable a smooth transition into fully decentralized governance. Following the Cardano roadmap, CIP 1694 is the fifth and last stage of network development after the Alonzo and Vasil upgrade.
Since the proposal for voting and adoption release, some community members have been studying its details. A Cardano-based outlet provided details about the CIP, starting with a video explaining the voting section. They released another video that explains the governance state section of the CIP.
Hoskinson commended the community’s efforts in learning about the CIP and encouraged them to share opinions about its pro and cons. According to Cardano’s roadmap, the Voltaire upgrade would introduce a voting and a community-controlled treasury system. These features will allow participants to use their stakes to influence future developments on the network.
Up-scaling Cardano’s decentralization could further increase ADA’s adoption and push the token’s value upward.
Previous Upgrade Of Cardano, Was It A Success?
Voltaire would be the next upgrade on Cardano after the Vasil hard fork in September 2022. Vasil introduced CIP (Cardano improvement proposal)-31, 32, and 33, each with unique scaling properties.
The CIP-31 brought a new reference input mechanism to enable DApps easy access to transactional output data. CIP-32 enhanced Cardano’s decentralization by bringing on-chain data storage functionality for network users. The CIP-33 was designed to allow faster processing time and reduced transaction fees.
The Vasil hard fork successfully went live on September 22, 2022, after facing several delays. The purpose of the Vasil upgrade was to improve the scalability, overall transaction throughput, and DApps development capacity on the network. However, it barely had any effect on ADA’s performance. The cryptocurrency continued its journey down the bottomless pit.
ADA experienced a one-month-long decline in value until January 2022, when it started recovering. ADA currently trades at $0.316 with a 12.40% 24-hour price increase. Who knows? The upcoming CIP 1694 upgrade might bring notable improvements to the Cardano Network that could add more upward push to ADA’s price.
Featured image from Pixabay and charts from Tradingview.com