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Cardano founder Charles Hoskinson criticizes Ethereum governance model
He said Ethereum does not have an on-chain treasury and argued that centralized influence means token holders should steer development through on-chain voting.
Cardano co-founder Charles Hoskinson, who previously helped build Ethereum, criticized Ethereum's governance model and said the next phase of crypto adoption will hinge more on safety, governance, and consumer protections than on faster blockchains, Yahoo Finance reports.
Hoskinson argued Ethereum lacks an on-chain treasury that could fund long-term development sustainably, and that the network relies on a small set of influential organizations. He also said a single bad hire can delay progress for years, adding that taking 5% of protocol revenue for the Ethereum Foundation would amount to roughly $390 million per year.
He further criticized Ethereum's reliance on large companies to set development priorities, saying meaningful decentralization requires token holders, not corporations. Hoskinson said Cardano's governance framework, while slower, is designed to be more sustainable through on-chain voting.
Following a recent bridge exploit involving Cardano-related infrastructure, Hoskinson said the industry is missing a key component, insurance. He proposed optional coverage for crypto wallets and cross-chain bridges, funded by premiums and backed by collateral pools, with protocols that meet defined security standards qualifying for insurance.
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