How centralized is Cardano? Crypto’s founder has answers and ADA holders aren’t going to like it

Justin Bons, the founder and Chief Investment Officer (CIO) of Cyber ​​Capital has called out Cardano and made serious accusations against the prominent blockchain and smart contract platform. To the dismay of ADA holders, Bons claims that Cardano is highly centralized, which casts a shadow on the blockchain’s reputation fundamental nature as a decentralized network.

Cardano’s decentralization questioned

In an X-post (formerly Twitter), Bons provided a detailed explanation of his accusations of centralization against Cardano. The founder of crypto announced this within the Cardano Blockchain They are mechanisms called “Genesis Keys” that can be used to control the blockchain, thus contradicting Cardano’s claims about decentralization.

He explained that these genesis keys are part of a multi-signature arrangement that controls Cardano’s network rules and protocols. According to Bons, if a group gets its hands on these keys, it could unilaterally exercise significant control over Cardano.

The crypto founder went further and accused Input Output Global (IOG), the technology company behind Cardano, of owning five of Cardano’s seven creation keys. This implies that the IOG currently has majority control over the blockchain and can potentially change any aspect of Cardano at its discretion and without community consent.

“The IOG could stop the chain, change emission schedules, exercise censorship and much more. That’s an unprecedented degree of centralized control for an L1 chain; shocking!,” Bons exclaimed.

The crypto founder clarified that the genesis keys were introduced as part of Cardano’s Shelly mainnet upgrade in 2020, highlighting that they were not present before then. Initially, control of these keys was divided between three main entities, including the IOG, Emurgo and the Cardano Foundation. This was to prevent any single entity from having condensed control over the network.

However, a crucial shift in the balance of power occurred after the Cardano Foundation delegated its control to the IOG. This effectively transferred a significant amount of control to the IOG, significantly reducing costs decentralized power from Cardano.

Community that takes charge of Cardano’s governance

Respond to Bons centralization claims, Jaromir Tesar, a Cardano Delegate Representative (DRep), has given reassurances about the future governance of the blockchain network. Tesar explained that very soon the administration of Cardano will be transferred to its own government communitywhich significantly changes the power dynamics within the network.

He revealed that once this transition occurs, the Genesis Keys would lose their functionality, while the roles of the IOG, Cardano Foundation, and Emurgo would be replaced by the DReps. To further reduce centralization within the blockchain, Tesar announced this ADA holds can become a DRep, gaining some influence over the Cardano network and ensuring that governance is not limited to a fixed number of people.

He added that the governance framework will include DReps, the Constitution Committee and the Stake Pool Operators (SPO). These three entities will work together to make decisions about Cardano’s network management.

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