The Cardano community highlighted governance and the constitution on ADA in the Messari Q1 2025 report. They stated, "The constitution is straightforward, and community management with active DREPs has now begun this process." On February 24, 2025, the blockchain enacted its constitution. Furthermore, marking the beginning of real-time governance, driven by the community under CIP-1694. This transition represents the move to Cardano's final development phase aimed at complete self-sustainability. With the first Delegated Representatives (DREPS) now actively involved in the growth of the ADA community. This has pushed Cardano beyond theory to real on-chain decision-making.
Decentralized governance goes live under CIP-1694
The enactment of the Cardano Constitution triggers the implementation of the CIP-1694 framework (Cardano Improvement Proposal). This illustrates how the community proposes, discusses, and votes on changes. Under this model, DREPS, or Delegated Representatives, are empowered to vote on behalf of ADA holders. Their role ensures that decision-making is accessible, distributed, and effective.
Stake pool operators (SPOs) and the constitutional committee support a new governance layer. This provides additional checks and balances. SPOs contribute technical insights and ensure network reliability. The committee oversees to maintain the integrity of the constitutional process. This structure makes Cardano governance decentralized and accountable.
This governance launch marks a critical moment in the Voltaire era, the final stage of Cardano's long-term roadmap. Voltaire focuses on enabling the network to evolve without central 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 provides a clear framework for how proposals are submitted and adopted, bringing the platform closer to its vision of a truly decentralized ecosystem.
ADA Q1 2025 Report: Metrics show growth and progress in governance
According to Messari's ADA Q1 2025 report, the Cardano ecosystem recorded notable changes. The StableCoin market cap rose by over 30%, reaching $30.2 million. This growth was driven by the launch of the USDA and the increasing use of USDM, the two main stablecoins within the Cardano network.
Source: Messari's X Post on May 21, 2025.
Another key metric shows a 13% increase in the Defi diversity score, indicating broader participation across decentralized applications. Meanwhile, the 5% increase in the Cardano Treasury suggests healthy reserves that can be used to fund future community proposals. The report also noted a decline in network activity. A 28% drop in transactions and fees contrasts with progress made in governance and treasury strength. Nevertheless, the network's focus on long-term maturity and sustainability remains evident.
Why this matters for Cardano and the broader blockchain space
Cardano is now among the first major blockchains to implement full on-chain governance. With Dreps already active, the community has entered a new phase. The successful implementation of decentralized governance could serve as a blueprint for other projects. It provides a model for achieving long-term sustainability through community participation.
For Cardano, this transition reflects years of development and systematic testing. For the broader ecosystem, this marks a significant change in how people manage themselves. The clear mechanics of CIP-1694, alongside early adoption, demonstrate that decentralized governance is no longer a theory.
Cardano is now moving deeper into the Voltaire era with a clear focus on organized and responsible decentralization. This approach may inspire similar changes across other blockchain projects. The Messari Ada Q1 2025 report highlights a governance milestone, a key step in Cardano's path toward complete self-governance.
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