Cardano's Management Crisis: Hoskinson's Plan to Save ADA — A Last Chance or Agony?
The Cardano ecosystem is experiencing perhaps the most difficult period in its history. Project founder Charles Hoskinson has presented a radical plan to restructure the governance system, but the market has received it cautiously: over the past month, the ADA token has collapsed by 35%, settling around $0.16. These are five-year lows, and investors are seriously questioning whether the new political model can save the project or whether we are witnessing its final stage.
Systemic Failure: Why Cardano's Governance Cracked
The root of the problems lies in the very architecture of decision-making. Hoskinson directly stated that the current model has reached a dead end. Total funding requests for projects have exceeded 600 million ADA, while the treasury limit is only 350 million. Moreover, there is no unified strategy for fund allocation. This has led to paralysis: budget votes fail, and key delegates (DReps) are ceasing activity one after another due to burnout and endless disputes.
The situation has been exacerbated by the departure of the analytical platform TapTools and several other key participants from the market. The failure of the vote to allocate a budget for the Cardano 2026 summit was merely the last straw, reinforcing the opinion that the new political model cannot handle the pressures.
Hoskinson's Plan: From X to Discord and a Political Party
The project founder proposes a radical change in the communication environment. In his opinion, the X platform (formerly Twitter) only provokes chaos and endless arguments, making strategic decision-making impossible. Hoskinson compared this to "a library where someone bangs pots and pans every day."
As an alternative, it is proposed to move all discussions to a moderated Discord server. The model has already been successfully tested on the servers of the Midnight project, where after blocking provocateurs, it was possible to gather about 49,000 active users. In parallel, the introduction of zero-knowledge technologies for anonymous voting is planned, which will protect innovators from harassment.
The most resonant part of the plan is the creation of an analogue of a political party. Hoskinson intends to officially register as a delegated representative and create a faction with strict regulations. The rules will be as straightforward as possible: "We will automatically vote against all funding requests if the project has not joined and does not participate in the governance Discord." It is emphasized that this is not an attempt to seize power — any ADA holder can join, and the final decision remains with the blockchain vote.
Additionally, it is proposed to update the Cardano constitution, clearly defining the powers of executive bodies and establishing elected positions. Without clear success criteria, any budget dispute turns into an endless war of interpretations.
The Market Demands Proof
Despite the loud statements, the market does not yet perceive this plan as a turning point. On June 2, ADA fell below the support level around $0.23, and by June 6, it had dropped to $0.157 — levels not seen since 2020. The largest volumes occurred during the sell-off, which indicates a surrender of positions rather than a planned change of stance. After Hoskinson's video addresses, there was only a weak bounce to $0.18, after which the price fell back to $0.17.
Hoskinson emphasizes that the price of ADA is important to him because it is directly linked to the security and utility of the network. His main warning was harsh: "Cardano will either succeed or disappear."
Expert Opinion: Hoskinson's plan is an attempt to bring order amidst growing chaos, but it carries serious risks. Creating a "political party" with automatic voting against anyone who hasn't joined Discord could lead to an even greater split in the community and an outflow of independent developers. The market is waiting not for slogans, but for concrete results in scaling (Leios) and real integration (RealFi). For now, we are only seeing a struggle for control over communications, not for the growth of the token's value. If the reforms do not lead to a rapid restoration of trust, ADA risks finally losing its position among the top cryptocurrencies.