The Collapse of Cardano Management: Hoskinson's Plan to Save ADA — The Last Hope or Agony?
Cardano founder Charles Hoskinson has unveiled an ambitious plan to restart the blockchain's governance system. However, the market met the initiative with complete silence: the ADA token continues its decline, losing 35% over the month and settling around $0.16. The ecosystem is in a deep crisis, and it seems it will have to be saved by the most radical methods.
Hoskinson recorded three video messages in mid-June, in which he stated that the project vitally needs a new decision-making structure. The current model, according to him, has reached a dead end. Total funding requests for projects exceed 600 million ADA, while the net change limit is only 350 million ADA. There is no unified strategy for fund allocation, and the failure of the budget vote for the Cardano summit in 2026 only exacerbated concerns. Several key delegates have officially suspended their work, reinforcing the view that the platform's new political model is untenable.
Diagnosis: Communication and Governance Crisis
Hoskinson believes the root of all problems is the wrong choice of communication platform. Platform X (Twitter), in his opinion, only encourages endless arguments and discord, while constructive attempts to reach an agreement drown in a stream of mutual accusations. He proposes moving all discussions to a moderated Discord, where the Midnight project server is already operating successfully, gathering around 49,000 active users. Zero-knowledge technologies are planned to be integrated into the Cardano ecosystem, allowing users to vote completely anonymously, protecting authors of innovative ideas from aggressive pressure and harassment.
Hoskinson's Political Party: Strict Regulations and Automatic Veto
The most resonant part of the plan is a new political initiative. Hoskinson intends to officially register as a Delegated Representative (DRep) and create an analogue of his own political party with strict regulations. The rules within the association will be as straightforward as possible: "We will automatically vote against all funding applications if the project has not joined and is not participating in the governance Discord." The developer emphasizes that this is not an attempt to seize power, but a desire to increase the overall responsibility of participants. Any cryptocurrency holder can join the faction, and the final decision will in any case remain with the blockchain vote.
Additionally, it is proposed to update the Cardano constitution: briefly outline the powers of executive bodies, establish elected positions, and define key goals for growth. Without clear success criteria, any budget dispute turns into an endless war of interpretations.
Market Demands Proof: ADA at Five-Year Lows
For now, Hoskinson's plan remains just words. On June 2, ADA fell below support around $0.23, and by June 6, it dropped to $0.157—values the market has not seen since 2020. The largest volumes occurred during the sell-off, which suggests capitulation rather than a planned shift in positions. The video messages appeared against the backdrop of a weak rebound: ADA briefly rose to $0.18, but then fell back to $0.17. The current price remains well below the $0.23 mark, which now serves as resistance.
Hoskinson does not hide his concern: "Of course, the price of ADA is important to me. It is directly linked to the security and utility of Cardano." His warning was even harsher: "Cardano will either succeed or disappear."
Expert opinion. Hoskinson's plan is a desperate attempt to consolidate a crumbling community through strict discipline and centralization of discussions. However, the market has long stopped believing in words and is waiting for real actions and measurable results. Moving from X to Discord will not solve the fundamental problems of tokenomics and the lack of a clear roadmap. If the launch of the Leios testnet on June 23 does not show tangible progress, ADA risks remaining at five-year lows, and Hoskinson's "lifeline" may be the last one to leave the sinking ship.