• Vanessa Hariss, a Senator at Team Kujira, criticized Cardano’s proposed governance structure as being non-centralized and giving too much power to IOG.
• Charles Hoskinson responded to the claims saying it was an example of FUD spreading.
• As sentiment around ADA dimmed, its price and volume decreased, leading to increased volatility.
Vanessa Hariss‘ Criticism of Cardano Governance
Vanessa Hariss, a Senator at Team Kujira (a decentralized ecosystem for protocols), on 5 March claimed that the Cardano governance was not centralized. In a Twitter thread, she stated that IOG (Input Output Global), the company behind Cardano’s formation, could dominate a large part of Cardano’s governance due to the CIP-1694 proposal. According to her, this would be occurring due to the CIP-1694 proposal which will give away a lot of power to Cardano’s Constitutional Committee — comprised of insiders from IOG — which would be able to veto any governance action except motions of no confidence and calls for a new committee. She also mentioned that ADA stakers will not be afforded a platform to participate in the governance affairs of Cardano without either paying fees or becoming delegates themselves.
Charles Hoskinson Responds
Well, much to the surprise, Charles Hoskinson responded quickly to these claims. He dismissed these statements saying „This is categorically false and a great example of how FUD spreads.“ In response many users have requested for more clarification on these doubts about the Cardano governance through Twitter spaces organized by Charles Hoskinson himself.
ADA Sentiment and Price Impacted
Meanwhile, all the talk about the Cardano governance affected sentiment around ADA negatively as per Santiment’s data. Furthermore, the volume of ADA also fell from 258 million over last month down to 185 million at press time. During this period ADA’s price showed strong correlation with its volume decreasing 16% in total leading up till now increasing volatility further for ADA holders buying into it currently making it riskier asset then before if trend continues in same direction or not remains yet seen but here we can have look at what market cap looks like in BTC terms(see below).
Market Cap in BTC Terms
Realistic or not here’s what market cap looks like in terms of Bitcoin: Source: Santiment
Conclusion
Despite criticism directed towards cardanos proposed constitution their spokesperson Charles Hoskinson was quick enought o address those concerns dismissing them via his twitter account calling them FUD but still it had impact on overall sentiment causing prices+volumes both combined dropping significantly ,however future remains yet seen as far as trend is concerned so only time can tell what lies ahead for ADAs future potential .