Justin Bons, founder and chief investment officer (CIO) of Cyber Capital, has spoken out against Cardano, making serious accusations against the prominent blockchain and smart contract platform. To the great dismay of ADA holders, Bons alleged that Cardano is highly centralized, casting a shadow over the blockchain’s reputation and fundamental nature as a decentralized network.
Cardano decentralization questioned
In a post on X (formerly Twitter), Bons provided a detailed explanation of his centralization allegations against Cardano. The crypto founder revealed that in the Blockchain Cardano are mechanisms called “Genesis Keys”, which can be used to control the blockchain, thus contradicting Cardano’s decentralization claims.
He explained that these genesis keys are part of a multi-signature arrangement that controls The Cardano network rules and protocols. According to Bons, if one group obtains these keys, it can unilaterally exert significant control over Cardano.
The crypto founder went further, accusing Input Global Output (IOG), the technology company behind Cardano, to hold 5 of the 7 genesis keys of Cardano. This implies that 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 shut down the channel, change broadcast schedules, censor and much more. This is an unprecedented degree of centralized control for an L1 chain; shocking! “, Good exclaimed.
The crypto founder clarified that Genesis keys were introduced as part of Cardano Shelly Mainnet Upgrade in 2020, emphasizing that they were not present before that date. Initially, control of these keys was distributed between three key entities including the IOG, Emurgo and the Cardano Foundation. This was to prevent a single entity from having condensed control over the network.
However, a critical shift in the balance of power occurred after the Cardano Foundation delegated its control to IOG. This effectively transferred a significant amount of control to the IOG, significantly reducing the decentralized power of Cardano.
The community will take over the governance of Cardano
Reply to Vouchers centralization claims that Jaromir Tesar, a delegated representative of Cardano (DRep), has reassured about the future governance of the blockchain network. Thésar explain that very soon the governance of Cardano will be transferred to its communitysignificantly changing the power dynamics within the network.
He revealed that once this transition is made, Genesis Keys will lose their functionality while the roles of IOG, Cardano Foundation and Emurgo will be replaced by DReps. To further reduce centralization within the blockchain, Tesar revealed that all ADA holder can become a DRep, thereby gaining a share of 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, incorporation committee and stake pool operators (SPO). These three entities will collaborate to make decisions regarding the governance of the Cardano network.
Featured image of Dall.E, chart by Tradingview.com
