Charles Hoskinson has presented a detailed strategy for transitioning to Cardano's next governance system. However, the crypto market has so far not reacted to the announcement in any way. The price of the ADA token has crashed 35% over the month and continues to hold around $0.16.
The blockchain's founder recorded three video addresses over the course of a week. The developer stated that the project urgently needs a new structure for making decisions. He proposed creating a moderated Discord server and forming an advisory pool of voters. Such an association would force funding applicants to bear strict accountability to the community.
Holders of digital assets expressed their opinion on the charts. The altcoin is trading near its six-month lows after a sharp monthly drop. The decline in quotes continues, even though the platform's developer calls the current period a favorable moment for developing the network.
Cardano's governance crisis hit the price
The situation within the community remains extremely tense. Over the past 30 days the ADA coin has lost about 32% of its value. As a result, the blockchain's market capitalization shrank to $6.3 billion.
Financial problems deepened because of the crisis in the ecosystem itself. The analytics platform TapTools is completely ceasing its activity. A number of other key network participants have also wound down their activity. Constant disagreements during votes caused strong irritation among the delegated representatives (DRep) who take part in governance.
According to Hoskinson, the current model has reached a dead end. Total funding requests for projects exceed 600 million ADA. At the same time, the net issuance limit is only 350 million ADA. A single strategy for distributing funds is currently absent.
The failure of the vote to allocate a budget for the Cardano summit in 2026 only heightened the general anxiety. Several key delegates have officially suspended their work. This step underscored participants' concern that the platform's new political model is not coping with the load.
Source: BeInCrypto
