Cardano has activated the Van Rossem hard fork to reduce smart-contract execution costs and prepare the network for future scalability upgrades [1, 3].
This transition marks a critical step in the blockchain's evolution by implementing the first governance-approved network upgrade. By lowering the fees associated with executing smart contracts, the platform aims to increase utility and attract more developers before the launch of the Ouroboros Leios scalability upgrade later this year [1, 3].
The process leading to activation began with a mainnet decision point on June 15, 2024 [5]. Reports indicate the fork activated around July 17-18, 2024 [2, 4].
Market data accompanying the activation showed the price of the native ADA token at $0.158 [4]. This represented a price decrease of 1.39% [4].
Derivatives data for ADA showed a long-to-short ratio of 0.58 [4]. Additionally, open interest in ADA derivatives reached $421 million within a 48-hour window [4].
The Van Rossem upgrade serves as a technical foundation. It allows the network to handle the structural changes required for Ouroboros Leios, which is designed to further enhance the chain's ability to scale as user demand grows [1, 3].
“Cardano has activated the Van Rossem hard fork to reduce smart-contract execution costs”
The activation of the Van Rossem hard fork signals a shift toward a more decentralized, governance-led development model for Cardano. By reducing the cost of smart contracts and paving the way for Ouroboros Leios, the network is attempting to solve the 'blockchain trilemma' by balancing security, decentralization, and scalability to better compete with other smart-contract platforms.
