Cardano (CRYPTO: $ADA) faces an important vote on May 29 concerning its next hard fork.
The hard fork known as “Van Rossem” is already live on the preview test net and targets a mainnet governance vote at the end of May 29.
A Cardano Hard Fork Working Group withheld its recommendation of the new hard fork earlier this month over readiness concerns.
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This means that the upcoming vote will become a test of Cardano’s governance, say analysts.
ADA holders are expected to maintain full wallet and token access throughout the upcoming hard fork transition.
A crypto hard fork is a permanent change to a blockchain's underlying protocol. In the case of the Van Rossem hard fork, it pertains to Cardano's smart contract scripting environment.
The upgrade expands Cardano smart contract functionality while also lowering execution costs.
Advocates say the changes will improve script performance and reduce costs, making smart contracts executed on the Cardano blockchain easier to write and run.
However, for the Van Rossem hard fork to proceed, it will need a vote of support from Cardano’s governing body.
ADA is currently trading at $0.25 U.S., down 25% this year.