Cardano, the blockchain network co-founded by Charles Hoskinson, is set to undergo two significant upgrades, one of which is expected to take place this year, amidst recent criticism surrounding its native token and ecosystem. In response to skeptics, Hoskinson emphasized that the Cardano community has the advantage in terms of scalability, governance, and innovation. He also expressed confidence in the upcoming Chang hard fork, which is considered one of the network’s most significant forks since the Vasil upgrade in 2022 and is scheduled for the second quarter of this year.
The Chang hard fork marks the beginning of Cardano’s Voltaire era and will introduce the concept of community-run governance to the blockchain. This will enable on-chain community consensus and allow ADA holders to use their tokens for voting on proposals, ultimately leading to a fully decentralized network. Throughout the year, the transition will include the introduction of Delegate Representatives (DReps), a Cardano Constitution Convention event, and a Cardano community vote to ratify the initial draft of the Cardano Constitution.
Hoskinson also highlighted the importance of Ouroboros Leios, a new version of the proof-of-stake consensus model that aims to enhance throughput, scalability, and transaction speed for Cardano while maintaining decentralization. He believes that Ouroboros Leios represents a significant step forward in addressing the blockchain trilemma.
Hoskinson’s remarks were made in response to a video by Ben Armstrong, also known as ‘BitBoy,’ who questioned the future of Cardano. Armstrong compared Cardano to other cryptocurrencies such as Solana, Sui, and Toncoin, which he described as experiencing significant growth in terms of users, activity, and price action. However, Hoskinson believes that the crypto industry tends to focus on short-term narratives and that most of the criticism towards Cardano stems from emotional bias.
Industry experts have also defended Cardano against the criticism. Daniel Friedman, the founder and CEO of zenGate Global, stated that his decision to build on Cardano was based on business and architecture considerations rather than emotional factors. Similarly, Dan Gambardello, the founder of Crypto Capital Venture and a Cardano advocate, suggested that the negative sentiment was due to ADA’s price not surpassing $1.
Cardano’s ADA token has experienced lackluster performance this year, with a slight decrease since the beginning of 2024. At the time of writing, ADA was trading at $0.584, reflecting a 10% decline over the past seven days. Furthermore, ADA has dropped by 81% from its all-time high of $3.09 in September 2021, according to CoinGecko.
In conclusion, Cardano is preparing for significant upgrades, including the Chang hard fork and the introduction of community-run governance. Despite recent criticism, Hoskinson remains optimistic about Cardano’s future and believes that the network’s scalability, governance, and innovation capabilities, along with its strong community, will drive its success.