Cardano founder Charles Hoskinson has shared an over-optimistic vision for the future of the proof-of-stake blockchain platform, claiming that it could climb to the top of the cryptocurrencies list soon.
In a recent video, the crypto veteran talked about “Cardano Summer,” claiming that the blockchain’s native token ADA could surpass Bitcoin, Ethereum, and all other cryptocurrencies, thanks to a series of updates and proposals set to be released in the coming weeks.
One of the most significant updates is the CIP-1694 proposal, which aims to revolutionize Cardano’s on-chain governance infrastructure and turn the network into a truly decentralized government.
The proposal is set to be integrated into the upcoming Voltaire update and will allow any user to submit a governance action.
Hoskinson also talked about Cardano’s ongoing effort to measure and quantify decentralization using metrics such as the Genie and Nakamoto coefficients.
These metrics would provide valuable insights into Cardano’s level of decentralization and could be adopted by major regulatory bodies worldwide.
By using these indicators to assess decentralization, policy-makers could formulate informed regulations and differentiate between cryptocurrencies as either commodities or protocols based on their decentralization.
Hoskinson Addresses Regulatory Uncertainty
The Cardano founder also addressed the ongoing regulatory turmoil and shared how the development team is tackling the issue.
Hoskinson emphasized the need for a more nuanced and optimized regulatory framework, which could be fostered through the adoption of decentralization metrics like the Genie and Nakamoto coefficients.
The statement comes as regulatory agencies in the US, particularly the Securities and Exchange Commission, have launched an aggressive crackdown on the crypto industry following the catastrophic collapse of cryptocurrency exchange FTX last year.
So far this year, the agency has taken action against crypto exchanges Bittrex and Gemini, crypto lender Genesis, and a number of individual actors accused of manipulating crypto assets, including crypto entrepreneur Justin Sun and disgraced Terraform Labs founder Do Kwon.
More recently, the SEC also sent a “Wells notice” to Coinbase, threatening the crypto exchange with legal actions regarding some of its listed digital assets, its staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet.
Furthermore, another issue the SEC has been grappling with is the question of whether certain cryptocurrencies are securities or not.
As reported, Cardano advocate and founder of Crypto Capital Venture Dan Gambardello thinks it unlikely that the SEC will deem ADA as a security.
He gave two reasons for this thesis. Firstly, the ICO for Cardano occurred in Japan and was not accessible to investors from the US. Secondly, a recent court ruling found that secondary sales of LBC tokens from LBRY were not considered securities, setting a crucial precedent for ADA.