Cardano founder Charles Hoskinson has been reviewing various governance models across more than 11,000 different DAOs or decentralized autonomous organizations as he seriously looks to fundamentally enhance how Cardano (AD) effectively addresses and resolves internal conflicts. According to Hoskinson, this ongoing effort meaningfully builds on around 10 years of governance-focused research initiatives, and it may potentially lead to new proposals via ADA token enhancements, project constitutions, and its digital technology stack.
Notably, DAOs or distributed / decentralized autonomous organizations are no longer a new development. These so-called governance entities aim to effectively manage decision-making and resources allocated to large crypto and blockchain ecosystems.
Starting with the Ethereum (ETH) blockchain (under Vitalik Buterin) back in 2015, DAOs really began to take shape, but were mostly regarded as an exploratory exercise and were largely experimental in nature.
Now, though, DAOs have been launched by Ethereum, Cardano, and Solana (SOL) ecosystem participants for a wide range of use-cases. Unlike a centralized entity where a group of executives controls most of the high-level decision-making, DAOs attempt to effectively decentralize these processes through seemingly democratic voting processes that can be carried out and monitored on-chain (to promote transparency and overall efficiency).
With Hoskinson now sharply focused on improved governance mechanisms for DAOs and enhancing Cardano (ADA) ecosystem activity, the blockchain and smart contracts project might finally have a chance to grow and onboard a meaningful number of users. But for this to truly materialize, the Cardano community will need a lot more than good governance and DAOs.
So far, Cardano has not achieved significant market share and user adoption. This, after the project was valued at over $100 billion in 2021. Despite Hoskinson’s tall claims and promises that aim to elevate Cardano (unrealistically) past Ethereum and even Bitcoin, the reality is that ADA is down considerably in the current bear market.
Moreover, ADA has yet to even surpass its highs set in 2018. Interestingly, Hoskinson has now pivoted from placing emphasis on price toward product development and practical use-cases. But these two go together if we think about it.
Once a project, company, or initiative truly delivers useful products and services, then its valuation increases as a natural consequence. And with Cardano, it now seems that there are no such breakthrough innovations that consumers and businesses could really benefit from and find useful in the real world.