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Cardano is set to solve the decentralization issue that has long affected the crypto space by providing a decentralized model for balanced decision-making and community empowerment.
Key Notes
Hoskinson critiques Ethereum for its centralized governance under Vitalik Buterin, limiting community influence.Cardano's new governance system through Intersect empowers community participation and collaboration.ADA is now a governance token, allowing holders to elect representatives and vote on proposals.Charles Hoskinson has taken a swipe at the governance structure of major blockchain networks, especially Ethereum ETH $2 626 24h volatility: -0.9% Market cap: $316.32 B Vol. 24h: $16.02 B and Bitcoin. Hoskinson explained that Cardano’s Voltaire-era governance would balance decentralization and effective decision-making, which is lacking in the blockchain sector.
Hoskinson believed that Ethereum governance is centered around the influence of co-founder Vitalik Buterin, which he referred to as dictatorship. He went further by saying that the community does not have a say on major decisions related to the ecosystem, as only Buterin’s ideas mainly shape Ethereum’s future.
The Cardano founder mentioned that only the 30-year-old Ethereum co-founder has the power to rally people in the community, as he is the only one every member of the community looks up to for guidance and roadmap. Hoskinson said:
“Everybody looks to him for the roadmap. Everybody looks to him for inspiration, and he’s also the only person who has enough power to rally people; if you were to remove him from the equation right now, what’s the next hard fork going to look like, and how quickly can they actually get there?”
Bitcoin was not spared in Hoskinson’s criticism as he slammed the “anarchy” governance structure of the network. According to him, the structure lacks clear leadership and decision-making systems. He said:
“If you have those three things, then you have a fair shot of avoiding the anarchy of Bitcoin or the dictatorship of Ethereum, and you actually have something that can move forward with one voice, but it’s still decentralized at the end of the day because it represents everybody.”
Cardano’s Innovative Approach: Decentralization through Community Empowerment
Hoskinson explained that the new Cardano governance model will encourage decentralization by spreading out power and decision-making. The member organization called Intersect includes researchers and engineers who will collaborate with elected community leaders. This way, governance decisions will be based on both technical knowledge and community feedback.
Cardano’s Chang hard fork in early September has transformed ADA ADA $0.38 24h volatility: 3.5% Market cap: $13.65 B Vol. 24h: $474.00 M into a governance token, therefore allowing holders to elect representatives, cast their vote on proposals, and even participate in decisions relating to funding for community projects.
Hoskinson believes this makes Cardano less reliant on its founder, stating:
“Charles, alive or dead doesn’t matter. There’s still going to be innovation on a daily basis.”
The Cardano constitution is also in process, and it is poised to be a major element of the network governance goal. This constitution is likely to set clear guidelines for the network’s governance process and related issues like supply and how governance operates.
Cardano’s governance aims to solve the centralization and what Hoskinson calls the “governance trilemma” that has since affected the crypto space by providing a well-balanced, decentralized, and decision-making system. Cardano plans to make this possible by leveraging technical expertise and establishing clear constitutional guidelines.
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Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor's and master's degrees in linguistics. When not writing, he trades forex and plays video games.
