Cardano’s founder, Charles Hoskinson, has unveiled an overhaul in blockchain governance designed to prevent the blockchain from becoming overly centralized, a fate he claims has befallen Ethereum. Hoskinson highlighted key differences between Cardano’s new governance model and the systems used by other major blockchains.

Hoskinson criticized Ethereum’s reliance on its co-founder, Vitalik Buterin, stating that such dependence centralizes power. According to Hoskinson, blockchains can either remain simple like Bitcoin or elect a singular leader to manage operations, as he claims Ethereum has done with Buterin. Cardano, however, aims to strike a balance by solving what Hoskinson refers to as the “governance trilemma” of efficiency, effectiveness, and integrity.

A Collaborative Approach to Blockchain Governance

At the heart of Cardano’s governance is a delegated system of representatives and a members-based organization called Intersect. This structure, according to Hoskinson, ensures that decisions are made collaboratively while still maintaining decentralization. Complex blockchain governance issues are distilled into simpler decisions that can be put to a vote, allowing the blockchain to progress while avoiding both dictatorship and anarchy.

“If you have these three pillars — efficiency, effectiveness, and integrity — then you can avoid Bitcoin’s anarchy and Ethereum’s dictatorship,” Hoskinson said. “You’ll have a system that’s truly decentralized, yet still capable of moving forward with one voice.”

When pressed to explain his comments on Ethereum’s centralized governance, Hoskinson remarked that the project’s direction is heavily influenced by Buterin. He stated that much of Ethereum’s roadmap, including its shift toward rollups and layer-2 networks, was largely driven by Buterin’s vision. While Buterin’s influence is significant, Hoskinson acknowledges that Ethereum does use a mix of on-chain and off-chain blockchain governance mechanisms, including input from developers and community members.

A Decentralized Future for Cardano

Cardano’s governance overhaul, which began with the Chang hard fork in September, has transformed ADA, Cardano’s native token, into a governance token. This change allows ADA holders to vote on important development proposals and elect representatives. Hoskinson emphasized that the founding entities guiding Cardano — including the Cardano Foundation, Input Output Global (IOHK), and Emurgo — are no longer able to single-handedly initiate forks or make upgrades.

Cardano’s governance system, Hoskinson said, will function with or without him. The interplay between the members-based organization of researchers and engineers, dubbed Intersect, and delegate representatives creates what he calls a “collaborative model.” This structure enables continuous innovation and decision-making without relying on any one individual, including the founder.

“They can communicate, vote, and regularly ratify a roadmap using blockchain-based governance,” Hoskinson explained. “It’s a system that will continue to evolve, even if I’m no longer involved.”

Looking ahead, Cardano is working to finalize a constitution that will set strict limits on key governance issues, such as the blockchain’s supply and decision-making processes. Hoskinson believes that these measures will ensure Cardano’s long-term success, making it a truly decentralized and self-sustaining blockchain platform.

Cardano’s vision for decentralized governance stands in contrast to both Bitcoin’s simplicity and Ethereum’s centralized leadership, positioning it as a unique player in the blockchain space.

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