Governance action

Cardano’s Voltaire - Glossary: key terms explained

A governance action is an on-chain event triggered by a transaction. Governance actions have an expiration period, after which the action cannot be enacted.

Any ada holder can submit a governance action for a vote on-chain. Once the action is recorded on the ledger, voters submit voting transactions. A governance action will be enacted once it is ratified (see below).

CIP-1694 defines seven different governance actions:

1. Motion of no-confidence

2. New constitutional committee and/or threshold and/or term limits

3. Updates to the Constitution

4. Hard fork initiation

5. Protocol parameter changes

6. Treasury withdrawals

7. Information


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