CIP-1694 explained

CIP-1694 is the Cardano Improvement Proposal that defined on-chain governance for Cardano. It replaced a model where a small number of genesis keys controlled protocol changes with one where ADA holders, the representatives they delegate to, and a constitutional committee appointed through governance share power.

The three bodies

CIP-1694 splits governance across three groups, and most governance actions require agreement from more than one of them.

• DReps — delegated representatives voting with ADA voting power delegated to them by holders.
• Stake pool operators — voting on the subset of actions that affect block production and network security, including hard forks.
• The Constitutional Committee — judging whether a governance action is constitutional before it can be enacted.

The governance action types

Every governance action falls into one of a fixed set of types, each with its own approval thresholds.

Why delegation is central to the design

CIP-1694 assumes most ADA holders will not read every proposal. Rather than treating that as apathy to be scolded, it makes representation the default path: you pick someone whose judgement you trust, they do the reading, and you retain the ability to override or replace them at any time.