Cardano (ADA) founder Charles Hoskinson has addressed community concerns about the future of the blockchain platform, responding to fears about stablecoins, scalability, and top-down support.
Hoskinson acknowledged the need for enhanced stablecoin support on the platform in a Monday recording, stating, “There definitely does need to be better-supported stablecoins on Cardano.”
Hoskinson further mentioned several attempts to create wrapped assets and bring Circle into the Cardano ecosystem, highlighting the promising development of homegrown stablecoins, such as USDM, and the ongoing efforts for Wyoming stable coin integration. Furthermore, Hoskinson revealed the formation of an entire company dedicated to supporting and advancing these stablecoin initiatives.
In response to concerns about scalability, Hoskinson explained that while congestion does occur on the network, it does not cause significant issues or lead to skyrocketing fees. He also mentioned several upcoming improvements to reduce the problem.
“It’s definitely true that transaction times increase and part of this can be solved in UX; part of this can be solved with other protocol enhancements. There’s a lot of things that are coming in terms of scalability and it’s a multi-layered solution… there’s Hydra, all the ZK stuff, input endorsers being published soon and then there’s obviously an ongoing effort to get that implemented,” added Hoskinson.
Hoskinson then addressed the issue of top-down support and the perceived lack of incentives for building on Cardano. He emphasized that the Catalyst system, with its billion-dollar treasury, allows the community to decide priorities and allocate resources accordingly. He also stated that the Cardano ecosystem does not need a “giant pile of money” to attract builders and that the current Catalyst system enables the community to decide priorities and allocate resources.
When asked about interoperability, Hoskinson explained that the Cardano native asset standard is baked into the platform’s design, making it easy for exchanges to support. He also mentioned the ongoing efforts to form a coalition of projects that want to get listed on exchanges and the importance of building standards for interoperability.
That said, Hoskinson encouraged the community to stay the course and emphasized the importance of on-chain governance, stating that “the single most important thing is on-chain governance because that creates the foundation upon which the treasury gets open, and consent gets given to what are priorities for the ecosystem.”
Hoskinson’s comes amid a sharp recoil for ADA’s price amid a broader crypto market pullback. Despite Cardano’s strong developer activity, ADA has underperformed compared to Solana, BNB, Bitcoin, and Ethereum. After hitting $0.80 in March, ADA’s price has been on a downward trend.
The crypto asset was trading at $0.58 at press time, reflecting a 7% drop in the past 24 hours. A break below the crucial support level at $0.57 could lead to a further drop to around $0.45.
