Cardano’s new governance framework, which is part of its Voltaire era, seeks to establish a balanced decision-making process that distinguishes itself from both the “dictatorship” attributed to Ethereum and the perceived “anarchy” of Bitcoin . Founder Charles Hoskinson argues that the initiative addresses the “governance trilemma” by promoting efficiency, effectiveness, and integrity through a system of delegated representatives and a community-based organization called Intersect. This approach allows complex governance issues to be simplified and voted upon, ensuring that the system remains decentralized while maintaining a unified direction.
Hoskinson has criticized Ethereum ’s governance for its heavy reliance on co-founder Vitalik Buterin, suggesting that this dependence limits innovation and decision-making within the network. He points out that Buterin’s influential role shapes the Ethereum roadmap, raising questions about the network’s adaptability if he were to step away. Despite acknowledging Buterin’s impact, Hoskinson notes that Ethereum operates through a combination of off-chain and on-chain governance involving the Ethereum Foundation and community stakeholders.
Having initially co-founded Ethereum , Hoskinson was dismissed due to conflicting visions for the project’s future. In contrast, he asserts that Cardano’s governance model is designed to thrive irrespective of his presence. The recent Chang hard fork transformed ADA into a governance token, empowering holders to elect representatives and vote on development proposals and funding initiatives. This evolution marks a significant shift, as founding entities like the Cardano Foundation no longer hold the authority to unilaterally instigate forks or upgrades.
The new collaborative governance model enables ongoing interaction among community representatives, facilitating a blockchain-based government that regularly ratifies the project’s roadmap. Cardano is currently in the process of establishing a constitution aimed at defining some essential governance parameters and supply limits, further cementing its decentralized and community-driven ethos.
