Cardano is setting the stage for a new era in blockchain governance—one that avoids the pitfalls of Bitcoin’s anarchy.
Cardano is positioning itself as a solution to blockchain governance issues that plague Bitcoin and Ethereum.
Founder Charles Hoskinson argues that Bitcoin’s rigid simplicity leads to chaos, while Ethereum’s reliance on co-founder Vitalik Buterin gives it a near-dictatorial structure.
Hoskinson criticizes Ethereum’s governance model, claiming it places too much power in the hands of Buterin, and questions whether Ethereum could adapt without him. As an example, he points to Ethereum’s controversial shift away from sharding in favor of rollups and layer-2 solutions—decisions largely shaped by Buterin himself.
Moreover, critics have raised concerns that this shift has empowered extractive layer-2 networks at the expense of Ethereum’s base layer.
Where does this idea of embracing layer 2s come from, or rollups come from? Was it some random Ethereum engineer — or was it Vitalik Buterin writing a blog post about it, talking about it, and advocating for it?”
In contrast, Cardano’s Voltaire-era overhaul introduces a governance model designed to maintain efficiency, effectiveness, and integrity. This model is built on a system of elected delegates and a research-focused organization called Intersect, which simplifies complex governance decisions for voting.
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The September Chang hard fork transformed Cardano’s ADA token into a governance tool, enabling holders to vote on development proposals and community funding. Unlike Ethereum, no single entity or founder can dictate the network’s future.
Hoskinson emphasizes that Cardano’s governance model is sustainable, even without his leadership. “Charles, alive or dead, doesn’t matter. Innovation will continue,” he states confidently. This collaborative governance ensures that the network evolves with the collective voice of its community, not just one visionary.
Cardano’s ongoing work to finalize its constitution will set boundaries on critical matters such as supply and governance processes, further solidifying its decentralized future.
