tl;dr
Cardano faces a governance dispute after a decentralized representative called “Whale” automatically voted “no” on all proposals from Input Output Global (IOG), the network’s development company. Cardano founder Charles Hoskinson criticized this behavior as emotional and lacking evidence, highlighti...
Cardano is currently embroiled in a governance dispute after a decentralized representative (DRep) called “Whale” began automatically voting “no” on all proposals from Input Output Global (IOG), the network’s development company. This move has sparked tension within the ecosystem, prompting Cardano founder Charles Hoskinson to respond strongly, describing the behavior as “emotional” and lacking an evidence-based foundation.
Hoskinson highlighted Cardano’s significant achievements, including progress through the Voltaire era, the establishment of a full on-chain government, and technological advances such as Hydra, Midnight, and Plutus upgrades, which have enhanced scalability, privacy, and smart contract functionality. He also pointed to initiatives like the Cardano Sovereign Wealth Fund aimed at introducing stablecoin liquidity, addressing a long-standing community demand.
Conversely, the DRep Whale criticized IOG for excessive spending and insufficient tangible results. Whale’s blanket rejection of all IOG proposals, including a $100 million ADA-to-stablecoin conversion plan, was challenged by Hoskinson, who argued this vote undermines rational governance and lacks technical merit. He warned that such emotionally driven voting risks damaging Cardano’s decentralized structure and future development.
Urgently, Hoskinson called on the community to delegate votes to “rational” actors who assess each proposal thoughtfully rather than defaulting to opposition based on personal disputes. He emphasized the critical role of upcoming governance discussions at the Rare Evo conference, where constitutional reforms and budgeting decisions will be shaped by community input.
This moment represents a decisive crossroads for Cardano, particularly as IOG prepares to reduce its central governance role. Hoskinson remains optimistic, believing that with prudent leadership and collaborative governance, Cardano has the potential to surpass competitors like Ethereum and thrive in the evolving blockchain landscape.