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Cardano governance is an on-chain decision system in which three independent bodies—Delegated Representatives (DReps), stake-pool operators (SPOs) and the Constitutional Committee (CC)—vote on protocol and treasury decisions. ADA holders can register as DReps, delegate voting power to another DRep (or to themselves), change that delegation, and vote directly when acting as a DRep. Each governance action has its own combination of required bodies and thresholds, and the blockchain checks the result at epoch boundaries.

What is CIP-1694?

CIP-1694 is the design specification for Cardano’s Voltaire-era governance system. It defines governance actions, voting roles, quorum and threshold rules, deposits, ratification and enactment. The system is implemented on-chain rather than through an off-chain poll: proposals, votes and outcomes are recorded by the ledger.

The design separates representation, operational security and constitutional review. ADA holders provide the broad electorate through delegated stake; SPOs contribute the perspective of the operators that produce blocks; and the CC checks whether an action is constitutional. No single body can approve every kind of action by itself.

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CIP-1694 DReps are not the same as Project Catalyst DReps. They are a distinct protocol role with authority over Cardano governance actions.

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The three bodies in Cardano governance

Body Who it represents What determines influence Role in decisions Continuity and removal
DReps ADA holders who delegate their voting rights Lovelace delegated to the DRep Can vote on every governance-action type A DRep must vote periodically to stay active; stake can be redelegated at any time
Stake-pool operators Operators responsible for producing blocks Pool stake under the SPO voting rules, which is separate from active DRep voting stake Required for No Confidence, committee updates, hard-fork initiation, security-relevant parameter updates and Info actions Influence follows the pool stake and the operator’s continuing role; the protocol does not give SPOs a constitutional-review mandate
Constitutional Committee An elected constitutional check One vote per committee member Judges constitutionality; most action types require its affirmation The elected body has seven seats with staggered terms; committee-update actions replace members

ADA holders and DReps

The Cardano Constitution gives ADA owners the right to participate in on-chain decision-making. An owner may register a DRep certificate and vote with the stake held by that DRep, or delegate the voting rights to an already registered DRep. Delegation can be changed later, so a holder is not locked into one representative.

A DRep’s voting power equals the lovelace delegated to it. This is delegated voting stake, not a separate token balance and not a headcount of individual wallets. A DRep therefore gains influence by convincing ADA holders to delegate, while each delegator retains ownership of the ADA.

Two protocol-defined choices are available when a holder does not want ordinary DRep representation:

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  • Abstain: delegated stake is marked as non-participating and is removed from the active voting-stake denominator.
  • No Confidence: the stake counts as Yes for a No Confidence action and as No for every other action, while remaining in the active voting stake.

DReps also have an activity requirement. They 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 rule prevents an abandoned registration from silently affecting turnout calculations forever.

Stake-pool operators

SPOs are the operators of the pools that produce Cardano blocks. Their votes are not a second version of DRep voting: CIP-1694 uses a separate stake basis for SPO thresholds. For a hard-fork initiation, the specified percentage is calculated from stake held by all pools.

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The Constitution and CIP-1694 require SPO participation for five categories: No Confidence, Update Committee, Hard Fork Initiation, security-relevant protocol-parameter updates and Info actions. SPOs do not vote on every treasury or parameter decision. Their required votes are concentrated on changes that affect network continuity, the constitutional bodies or operator security.

The Constitutional Committee

The CC is the constitutional safeguard. Its members decide whether a governance action conforms to the Constitution; they are not a general policy chamber. The Constitution states that the CC is limited to voting on the constitutionality of governance actions, including actions contained in Info proposals.

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Each member has one vote. Most action types require the requisite CC affirmation, but No Confidence and Update Committee actions are exceptions because those actions directly concern the committee’s own composition or confidence relationship.

The official Cardano glossary describes the elected CC as a seven-member body with staggered seats. It records that a 2025 community election filled all seven seats. It also records a 2026 committee-update 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. Membership and term information can change through later elections, so treat those figures as a dated status rather than a permanent roster.

How a Cardano governance action passes

CIP-1694 groups proposals into eight action families: No Confidence, Update Committee, New Constitution or Guardrails Script, Hard Fork Initiation, four protocol-parameter groups, Treasury Withdrawal and Info. The required voters and threshold differ by family.

Action type Required bodies in the CIP-1694 design Important rule
No Confidence DReps and SPOs; CC affirmation is not required A No Confidence delegation counts as Yes for this action
Update Committee DReps and SPOs; CC affirmation is not required Used to replace or change committee membership
New Constitution or Guardrails Script CC and DReps A constitutional amendment normally needs at least 65% of active voting stake unless a guardrail specifies another threshold
Hard Fork Initiation CC, DReps and SPOs The SPO threshold uses the stake held by all pools
Protocol-parameter update CC and DReps for ordinary groups; security-relevant changes also require SPOs Thresholds depend on the parameter group and current protocol settings
Treasury Withdrawal CC and DReps Requires constitutional review plus DRep approval
Info DReps and SPOs, with constitutional review applying to the action’s constitutionality The CIP-1694 design uses 100% DRep and 100% SPO thresholds

Threshold labels sometimes shown in technical documentation, such as P1, P3 or Q4, are governance parameters. They are not universal percentages that can safely be copied from an old explainer. Check the parameters in force for the network and protocol version when evaluating a live proposal.

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Ratification, enactment and expiry

The ledger evaluates ratification at epoch boundaries, not continuously after every individual vote. When an action reaches all of its required thresholds, it is ratified and staged for enactment at the next epoch boundary. Until that boundary, the action is approved but not yet active.

An action that fails to reach its requirements eventually expires, and its deposit is returned. No Confidence, Update Committee, constitutional changes and hard forks also affect the timing of other actions: they delay ratification of those other actions until the first epoch after their own enactment. This sequencing prevents a major constitutional or network transition from being finalized simultaneously with unrelated changes.

What the Constitution adds to governance

The Constitution is the standard against which the CC reviews actions. It also sets principles that are broader than any one proposal. For example, the ratified text states that Cardano’s total ADA supply shall not exceed 45 billion ADA. It requires at least 65% of active voting stake for a constitutional amendment unless a guardrail establishes a different threshold.

Those numbers should be read with their qualifications: the 45-billion ceiling is a constitutional maximum, not the current circulating supply, and the 65% figure applies to amendments under the stated exception. Other action thresholds come from the relevant governance parameters and can change through authorized updates.

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How Cardano governance developed

August 2024: Chang bootstrap

The Chang bootstrap phase introduced the first operational pieces of CIP-1694. DReps could register, and ADA holders could delegate voting rights. An interim Constitution and interim CC operated while only a limited set of governance actions was available.

January 29, 2025: Plomin hard fork

Plomin occurred on January 29, 2025, in epoch 537, moving the protocol to version 10.0. Cardano documentation describes it as the hard fork that completed Conway governance capabilities, enabled the full set of governance actions and activated the DRep role for ADA holders.

2025–2026: elected committee operation

Community elections replaced the interim constitutional arrangement with elected committee members. The official glossary’s 2025 and 2026 entries document the seven-seat structure and the 2026 successor action, but future elections can change both membership and term dates.

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How to delegate your ADA voting power

You do not need to operate a stake pool to participate as an ADA holder. You need a wallet that supports Cardano governance certificates and a DRep or delegation choice.

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  1. Use a governance-compatible wallet. Confirm that the wallet supports the current Cardano governance features, DRep registration and delegation. Wallet support and menu labels vary by release.
  2. Open the governance area. In the wallet, look for Governance, Voting or Delegation. Review the wallet’s displayed active stake and any transaction fee before signing.
  3. Choose a representation option. Select a registered DRep, register yourself as a DRep, choose Abstain, or choose No Confidence. Read the option’s effect on active voting stake before confirming.
  4. Sign the certificate transaction. Delegation is recorded on-chain. The ADA remains in your wallet; the transaction changes the voting-rights assignment.
  5. Revisit the choice when needed. You can redelegate, switch to Abstain or No Confidence, or update your DRep registration. A DRep who wants to keep delegated stake active must continue meeting the protocol’s voting-activity requirement.

When selecting a DRep, examine the representative’s stated principles, voting record, participation rate and ability to explain technical proposals. A large delegation gives a DRep more voting power, but it does not guarantee that the representative will vote the way every delegator expects.

How to become and act as a DRep

  1. Register a DRep certificate through a governance-compatible wallet or governance tool.
  2. Publish an identity and policy statement through the channels you choose so ADA holders can evaluate your positions. The protocol does not require a particular political platform.
  3. Monitor active governance actions and their deadlines, required bodies and threshold parameters.
  4. Cast votes on-chain. DReps may vote on every action family, including treasury withdrawals, parameter updates, committee actions and hard forks.
  5. Maintain activity. Vote periodically or update the DRep certificate as required so your delegated stake does not become inactive for denominator purposes.

Be precise when describing your role: DRep voting power is delegated lovelace, not personal ownership of the delegators’ ADA. Delegators can withdraw that support without transferring custody of their funds.

Do stake pools vote on Cardano proposals?

Yes, but only the action categories specified by the governance rules require SPO votes. An SPO vote is relevant to No Confidence, Update Committee, Hard Fork Initiation, security-relevant parameter updates and Info actions. Treasury withdrawals and ordinary parameter changes are not automatically SPO decisions.

Do not combine an SPO percentage with a DRep percentage when checking a proposal. The two bodies use different stake denominators: DRep thresholds use active DRep voting stake, while SPO thresholds use the pool-stake basis defined for that action.

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Common mistakes and how to avoid them

  • Treating every ADA address as an individual vote: influence is weighted by delegated lovelace, so one representative may hold voting power from many wallets.
  • Assuming an inactive DRep still counts: inactive delegated stake drops out of active voting stake until reactivation.
  • Calling the CC a policy legislature: its constitutional mandate is narrower; it judges constitutionality rather than approving every policy preference.
  • Using an old percentage table: threshold parameters can change. Verify the current protocol parameters and action type.
  • Confusing No Confidence with Abstain: Abstain removes stake from the active denominator, while No Confidence remains in that denominator and votes Yes only on No Confidence actions.
  • Expecting instant enactment: ratification is checked at epoch boundaries, and enactment follows on the next boundary.
  • Assuming a committee roster is permanent: elections and committee-update actions can change members and successor terms.

Why the model matters

CIP-1694 combines broad participation with checks that reflect different risks. DReps provide a scalable way for ADA holders to make policy decisions without every holder voting on every proposal. SPOs add operational knowledge where network continuity and security are at stake. The CC provides a constitutional test rather than another general-purpose political vote.

The result is deliberately procedural: identify the action family, determine the required bodies and live thresholds, collect on-chain votes, evaluate ratification at the epoch boundary, and enact only after all conditions are met. Understanding those steps is more useful than memorizing a single percentage because Cardano’s governance parameters and elected membership can change over time.

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