Cardano (ADA) founder Charles Hoskinson recently spoke at Token 2049, highlighting Cardano's evolution into the Voltaire phase of its roadmap. This stage enables community members to vote on the blockchain's future development, aiming to avoid Ethereum's "dictatorship" and Bitcoin's "anarchic state."
Criticizing Ethereum's Overreliance on Vitalik Buterin
As a former Ethereum co-founder, Hoskinson parted ways with Vitalik Buterin due to ideological differences. Now, he critiques Ethereum's governance model, arguing it overdepends on Vitalik's decisions. He questions why Ethereum doesn't adopt Bitcoin's simplicity or elect a "true leader" to steer its direction.
Introducing ADA's Governance Model to Avoid Bitcoin and Ethereum's Pitfalls
Hoskinson explains that Cardano's new governance model involves delegated representatives and the Intersect community organization working together to address the "efficiency, effectiveness, and integrity" trilemma. This system streamlines governance issues through voting, preventing Cardano from descending into Bitcoin's "anarchy" or Ethereum's "autocracy." The goal is to unify diverse opinions while maintaining clear progress.
👉 Discover how Cardano's governance model fosters decentralization
What Happens if Vitalik Leaves Ethereum?
When pressed to define Ethereum's "dictatorship," Hoskinson stated: "Ethereum began with Vitalik, and it may end with him." He emphasized that the entire ecosystem looks to Vitalik for inspiration, roadmaps, and cohesion. "If he left today, what would Ethereum's next hard fork look like? How quickly could goals be achieved?"
Hoskinson Highlights Ethereum's Misplaced Priorities and Rising User Costs
Hoskinson points out that Vitalik shifted Ethereum's scaling approach from sharding-based solutions to rollup-dependent L2s. Recent critiques argue that Ethereum's overreliance on "extractive L2 solutions" has reduced L1 activity and fee revenue. Hoskinson questions: "Where did these L2 and rollup ideas originate? Were they proposed by an Ethereum engineer, or did Vitalik pioneer them?"
Decentralization and Innovation: Cardano's Charter-Driven Governance
Hoskinson acknowledges his early role in Cardano's development but stresses its governance model ensures "his presence—or absence—won't hinder innovation." Following September's Chang hard fork, ADA became a governance token, allowing holders to vote on proposals and funding. Upgrades can no longer be triggered solely by the Cardano Foundation, IOHK, or Emurgo.
👉 Learn how Cardano's Intersect organization ensures decentralized progress
Hoskinson asserts that Cardano's delegate-representative collaboration ensures decentralized operation. The ecosystem is now drafting a charter to formalize ADA's supply and governance rules.
Concerns Over Cardano's Slow Development and Practical Applications
FAQ Section
Q: How does Cardano's governance differ from Ethereum's?
A: Cardano uses community voting and delegated representatives, avoiding centralized control. Ethereum relies heavily on Vitalik Buterin's leadership.
Q: What is the Intersect organization?
A: Intersect is a community-led group that collaborates with delegates to resolve governance challenges and vote on proposals.
Q: Why did Hoskinson criticize Ethereum's shift to L2 solutions?
A: He argues it prioritizes short-term scalability over sustainable decentralization, increasing user costs and reducing L1 activity.
Q: How does ADA function as a governance token?
A: Holders vote on development proposals and funding, with elected representatives ensuring decentralized decision-making.
Q: What risks does Cardano's governance model address?
A: It mitigates autocracy (like Ethereum) and anarchy (like Bitcoin) by balancing community input with structured delegation.
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