The Cardano management crisis: Hoskinson's plan to save ADA and the market reaction
Cardano founder Charles Hoskinson has presented a detailed plan to restart the blockchain's governance system, but the market has yet to react positively. The price of the ADA token continues to face pressure, losing more than 35% over the past month and trading near the $0.16 mark.
Hoskinson recorded three video addresses in mid-June, in which he stated that the project urgently needs a new decision-making structure. As key measures, he proposed creating a moderated Discord server and forming an influential voting pool. According to his vision, such a union would force funding applicants to be strictly accountable to the community.
Financial crisis and governance paralysis
The atmosphere within the community remains extremely tense. Over the past 30 days, ADA has lost about 32% of its value, and the blockchain's market capitalization has shrunk to $6.3 billion. Financial problems have been exacerbated by a crisis within the ecosystem itself: the analytical platform TapTools is completely ceasing operations, and a number of other key network participants have also wound down their activity.
Constant disagreements during votes have caused severe burnout among the delegated representatives (DReps) involved in governance. As Hoskinson emphasizes, the current model 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 currently no unified strategy for fund allocation.
The failure of the vote to allocate a budget for the Cardano Summit in 2026 has only heightened overall anxiety. Several key delegates have officially suspended their work. This event has reinforced users' opinion that the platform's new political model is failing to cope with the pressure.
New political initiative: party or salvation?
The most resonant part of the plan is the new political initiative. Hoskinson intends to officially register as a delegated representative and create an analog of his own political party with strict regulations. The rules within the union will be as straightforward as possible: "We will automatically vote against all funding applications if the project has not joined and participated in the governance Discord."
The developer emphasizes that this is not an attempt to seize power. The team is merely seeking to increase the overall responsibility of participants. Any cryptocurrency holder can join the faction. The final decision will, in any case, remain with the blockchain vote.
Additionally, it is proposed to update the Cardano constitution, which will 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.
Technical development and market reaction
Simultaneously, the commercial direction of the business is also developing. To confirm the course towards scaling, Hoskinson references new technological solutions, including the integration of real finance (RealFi), interaction with the Bitcoin network (Pogan), development of ecosystem infrastructure (Blockfrost, Midnight, Midgard), and scaling with increased transaction speed (Leios). The launch of the Leios testnet is scheduled for June 23.
However, the market has yet to perceive this plan as a turning point. On June 2, ADA fell below support around $0.23 and by June 6 had dropped to $0.157 — the market has not seen such values since 2020. The largest volumes occurred during the sell-off, which speaks more of capitulation than a planned change in positions.
The video addresses appeared against the backdrop of a weak bounce — ADA briefly rose to $0.18, but then fell back to $0.17. The rate now remains far below the $0.23 mark, which now serves as resistance.
Hoskinson emphasizes that he is not indifferent to the token: "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."
My analysis: Hoskinson's plan is a desperate attempt to consolidate a fragmented community and restore project manageability. However, the market demands real proof, not political maneuvering. Until the reforms begin to yield measurable results, pressure on ADA will persist. Coin holders should closely monitor the launch of Leios and the level of delegate engagement in the new structure. Without clear action, the project risks finally losing investor confidence.