In a recent speech at Token 2049, Charles Hoskinson, the founder of Cardano (ADA), made bold claims about the future of blockchain governance—positioning Cardano as a more balanced, decentralized alternative to both Ethereum and Bitcoin. According to Hoskinson, Cardano has now entered the Voltaire phase of its roadmap, marking a pivotal shift toward community-driven governance that avoids the extremes seen in other major blockchains.
This evolution, he argues, allows Cardano to escape the so-called “dictatorship” of Ethereum and the “anarchic stagnation” of Bitcoin—offering a structured yet decentralized path forward.
Ethereum’s Overreliance on Vitalik: A Centralized Bottleneck?
Hoskinson, once a co-founder of Ethereum, has long been vocal about his philosophical differences with Vitalik Buterin. Now, he’s taking direct aim at Ethereum’s governance model, calling it overly centralized and dependent on a single figure: Vitalik.
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“Why not keep it simple like Bitcoin?” Hoskinson questioned. “Or, if you need leadership, why not have a real leader?” His critique centers on the idea that Ethereum’s roadmap, upgrades, and technical direction are still heavily influenced—if not dictated—by one individual. While Vitalik’s vision has undeniably driven innovation, Hoskinson warns that such dependence creates systemic risk.
“What happens,” he asked, “if Vitalik leaves today? Who decides the next hard fork? How quickly can Ethereum move forward without him?”
This rhetorical challenge underscores a deeper concern: a blockchain that prides itself on decentralization may still be governed in a top-down manner. Despite its robust developer community, Ethereum’s most critical decisions often hinge on Vitalik’s approval or public statements—raising questions about long-term sustainability.
Cardano’s Solution: Intersect and Delegated Governance
To avoid both Ethereum-style centralization and Bitcoin’s slow consensus model, Cardano is rolling out a new governance framework powered by delegated representatives and a newly formed organization called Intersect.
Intersect acts as a coordination body that helps streamline decision-making around three core challenges: efficiency, effectiveness, and integrity. Instead of relying on informal forums or social media sentiment, Cardano stakeholders can now vote on funding proposals, protocol upgrades, and development priorities through a formalized system.
This model allows ADA holders to delegate their voting power to elected representatives—experts who understand technical proposals and can act on behalf of the broader community. The result? Faster decisions without sacrificing decentralization.
Hoskinson emphasized that this structure ensures Cardano won’t collapse if any single person—including himself—steps away. “The system is designed so that my presence or absence makes no difference,” he said. “Innovation continues regardless.”
The Problem with Ethereum’s Shift to Rollups
Another key point of contention for Hoskinson is Ethereum’s evolving scalability strategy. Originally built around sharding as the primary Layer 1 scaling solution, Ethereum has pivoted toward relying heavily on Layer 2 rollups.
While rollups have improved transaction throughput, Hoskinson argues this shift has come at a cost: declining activity and fee revenue on the Ethereum mainnet (L1). He criticized what he calls “extractive L2 solutions,” suggesting they siphon value away from the core chain.
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He posed a provocative question: “Where did the idea of rollups come from? Was it proposed by an Ethereum engineer? Or did Vitalik write an article about it?”
The implication is clear: major architectural shifts in Ethereum often originate from a small circle of influencers rather than through open, democratic processes. In contrast, Cardano’s approach requires formal proposal submissions, community review, and on-chain voting—ensuring broader participation and accountability.
From Founder-Led to Community-Governed: The Chang Hard Fork Milestone
Cardano’s transition to full decentralization was cemented with the Chang hard fork in September 2025. This upgrade transformed ADA from a utility token into a governance token, enabling holders to participate directly in shaping the network’s future.
Under the new system:
- ADA holders can vote for delegates.
- Delegates review and vote on project funding and technical upgrades.
- Proposals are funded through a treasury system sustained by network fees.
Crucially, the old centralized triumvirate—Cardano Foundation, IOHK, and Emurgo—no longer has unilateral power to trigger system upgrades. Their role has shifted from decision-makers to contributors within a larger ecosystem.
This marks a fundamental philosophical shift: blockchain governance should not depend on institutions or founders, but on transparent, rules-based mechanisms accessible to all.
Avoiding Extremes: The Middle Path Between Anarchy and Dictatorship
Hoskinson draws a sharp contrast between the governance models of the three largest blockchains:
- Bitcoin: Highly decentralized but suffers from slow decision-making. Upgrades require near-universal consensus, leading to stagnation.
- Ethereum: Technologically advanced but overly reliant on key individuals. Governance is informal and influence-based.
- Cardano: Aims for balance—structured delegation with democratic oversight.
By introducing formal governance tools like Intersect and on-chain voting, Cardano seeks to maintain momentum without compromising decentralization. It’s not about eliminating leadership; it’s about making leadership accountable and replaceable.
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Frequently Asked Questions (FAQ)
Q: What is the Voltaire phase in Cardano’s development?
A: The Voltaire phase is the final stage of Cardano’s five-part roadmap, focused on establishing sustainable on-chain governance. It enables ADA holders to vote on proposals and fund development through a decentralized treasury system.
Q: How does Cardano’s governance differ from Ethereum’s?
A: Unlike Ethereum, where major decisions often stem from core developers or influential figures like Vitalik Buterin, Cardano uses a formal voting system where ADA holders elect delegates to make decisions—ensuring broader community involvement.
Q: Can one person control Cardano’s future?
A: No. Even though Charles Hoskinson founded Cardano, the post-Chang hard fork governance model ensures no single individual or entity can unilaterally control upgrades or funding decisions.
Q: What is Intersect in the Cardano ecosystem?
A: Intersect is an independent organization designed to support and coordinate Cardano’s decentralized governance. It helps manage proposal evaluation, delegate coordination, and long-term strategic planning.
Q: Why did Cardano move away from sharding like Ethereum?
A: Cardano took a different scalability approach by prioritizing layered development and sidechains early on. Rather than betting on sharding, it focused on modular design and off-chain computation—strategies now being mirrored by some Ethereum L2 projects.
Q: Is ADA a good investment for governance participation?
A: Holding ADA allows users to stake and vote on network upgrades and funding proposals. For those interested in active blockchain governance, ADA offers one of the most structured participation models available today.
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Looking Ahead: Can Cardano Deliver?
While critics continue to point to Cardano’s slower pace of application development, its methodical approach may prove advantageous in the long run. As regulatory scrutiny increases and users demand transparency, a blockchain with clear governance rules—and mechanisms for peaceful evolution—could gain significant traction.
Cardano isn’t just building another smart contract platform. It’s attempting to build a self-sustaining digital democracy, where innovation is continuous, inclusive, and independent of any single leader.
In a world where blockchain ideals are often compromised by practical realities, Cardano’s vision offers a compelling alternative—one that balances structure with freedom, progress with stability.