- Charles Hoskinson highlighted the relevance of sound governance to long-term success.
- Hoskinson’s stint as Ethereum CEO cemented his take on governance.
- Cardano’s Chang hard fork, which will bring decentralized governance, is due for rollout soon.
Cardano’s price continues to disappoint, with ADA currently hovering close to 2024 lows around the $0.40 mark. The issue is further compounded by competing layer 1 platforms, including Solana and TON, significantly outperforming Cardano since March, leading some observers to question the project’s long-term viability.
However, Cardano founder Charles Hoskinson remains undeterred by short-term market fluctuations. In a recent interview with Altcoin Daily, Hoskinson emphasized his continued focus on fundamentals, particularly governance, which he believes is the path to long-term success.
Cardano Chief Stresses Governance
Speaking to Altcoin Daily, Hoskinson emphasized the importance of governance in determining long-term success, using his experience as Ethereum CEO to illustrate his point.
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Hoskinson recounted being scared about NXT’s rise while serving as Ethereum CEO in 2014. The project emerged “out of nowhere,” rapidly adding features such as user-driven assets, a decentralized exchange (DEX), and smart contract capabilities, putting it technologically light years ahead of Ethereum.
However, despite its early promise and pioneering status, NXT has faded into obscurity. Currently, it has a fully diluted market cap of less than $900,000, is ranked 8,645th on CoinMarketCap, and has zero trading volume.
According to Hoskinson, NXT’s downfall can be attributed to two main factors. Firstly, its poor token distribution, but more crucially was NXT’s inadequate governance system, which ultimately led to the project splintering into various offshoots, including Lisk and Waves.
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Hoskinson claimed that if NXT had implemented the right governance system, Ethereum would not exist today. He emphasized, “Governance matters that much. It is the core differentiator between whether a project is successful or if it will fail, and in the long term, you can never get around the fact that poor governance will kill a project.”
When Chang?
Cardano’s ambitious approach to governance is set to materialize with the upcoming Chang hard fork, scheduled to occur sometime in Q2. With just two weeks remaining until the start of the next quarter, the Cardano community is eagerly anticipating Chang’s imminent rollout.
The Chang hard fork is billed as a significant milestone in Cardano’s development roadmap, promising to introduce revolutionary changes to the network’s governance structure.
Described as “a quantum leap towards unprecedented heights in blockchain innovation,” the Chang hard fork aims to transform Cardano into a fully decentralized self-sustaining blockchain.
This transition will eliminate top-down governance via a centralized entity, such as the Cardano Foundation, by introducing a decentralized voting and treasury system run by stakeholders.
Supporting this approach are features such as delegated representation and treasury access. These mechanisms are designed to transfer control of the ecosystem to the Cardano community, enabling stakeholders to collectively decide on project proposals and funding allocations.
On the Flipside
- Cardano‘s treasury is valued at $682 million.
- NXT was the first project to operate a fully PoS consensus model.
- Hoskinson‘s Ethereum exit is marred in controversy. Still, his departure boiled down to a difference of opinion in the future direction of the project with Vitalik Buterin preferring Ethereum to operate as a “nonprofit organization.”
Why This Matters
As much as governance may be key to a project’s long-term success, it cannot be pushed at the expense of other factors such as marketing and user experience.
Learn more about Cardano’s Chang and the future outlook for the project:
DailyCoin Cardano Regular: Countdown to the Age of Voltaire Nears
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