ADA on the Brink: Hoskinson's Plan to Save Cardano Governance — A Last Hope or an Agony?
Cardano founder Charles Hoskinson has unveiled a radical plan to reboot the blockchain's governance system. However, the market has met the initiative with icy silence: the ADA token continues its collapse, losing about 35% over the past month and settling around $0.16. The question now is not about price, but about the survival of the project itself.
Deep Governance Crisis
Hoskinson recorded three video addresses in which he stated that the current governance model has reached a dead end. Total requests for project funding have exceeded 600 million ADA, against a treasury limit of 350 million. There is no unified strategy for fund allocation, and budget votes for the Cardano Summit in 2026 have failed. This has led to key delegates (DReps) suspending their work, and the analytical platform TapTools is even winding down its operations. The community is burning out amid endless disputes.
Proposal: Discord as a New Arena and a "Political Party"
Hoskinson's key idea is to move all strategic discussions from platform X (Twitter) to a moderated Discord server. He compares the current situation to a library where people are constantly banging pots. In his view, it is impossible to make long-term decisions on X due to the noise and discord. A pilot project on the Midnight server has already shown success: 49,000 active users after blocking provocateurs.
But the most resonant part of the plan is the creation of a "political faction." Hoskinson intends to register as a delegated representative (DRep) and create an analogue of a political party with strict rules. The essence is simple: automatically vote against any funding proposals if the project does not participate in the governance Discord. "We will vote against everyone who has not joined our governance channel," he stated, emphasizing that this is not a power grab but an increase in accountability.
Market Demands Action, Not Words
Despite the announcement, the market was unimpressed. On June 2, ADA broke through the support level of $0.23 and by June 6 had fallen to $0.157 — a low not seen since 2020. A short-term bounce to $0.18 was quickly followed by a new drop to $0.17. The $0.23 level now acts as strong resistance.
In parallel, Hoskinson is announcing technological updates: the launch of the Leios testnet (scaling) on June 23, the development of RealFi, and integration with the Bitcoin network through the Pogan project. But for now, investors see only words.
My View as an Analyst
Hoskinson's plan is a desperate attempt to consolidate a fragmented community and bring order to governance. However, the move to Discord and the creation of a "faction" could be perceived as an attempt at centralization and ostracism of dissenters. In the crypto world, where decentralization is a sacred cow, such methods risk alienating even more participants. The market is waiting not just for plans, but for measurable results. For now, the ADA token is showing a classic picture of capitulation, and without a real influx of liquidity or proof of the new model's effectiveness, the price risks continuing its search for a bottom.