Ethereum's Funding Structure Under Fire from Cardano Founder
Charles Hoskinson, founder of Cardano, recently criticized Ethereum's funding structure, saying it relies on 'charity' rather than a built-in treasury. According to CoinDesk, Hoskinson highlighted that Ethereum lacks an on-chain treasury, which he believes makes it 'structurally weak.' In contrast, Cardano has its own protocol-managed treasury, which reached approximately $4.5 billion at one point.
The discussion between the two blockchains' funding models has sparked renewed attention to governance and sustainability in blockchain networks. Treasury design and ecosystem funding have become central themes in evaluating long-term network viability. While Cardano's built-in treasury allows for self-sustaining funding through community-approved proposals, Ethereum relies on external support from grants, organizations, and venture funding.
Hoskinson praised the transparency of Cardano's treasury process, where token holders participate in allocating funds for infrastructure, protocol improvements, education, and developer initiatives. In contrast, Ethereum's decentralized funding network involves multiple participants, including the Ethereum Foundation, commercial companies, and Layer-2 ecosystems.