Charles Hoskinson says he’ll hold Cardano hostage if he doesn’t get his way

CIP-1694 is a proposal by Charles Hoskinson’s company (IOG) to add governance to Cardano.

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Charles said in his latest video that if the community doesn’t vote to implement CIP-1694, “We (IOG) are just gonna burn the genesis keys”

The Rings of Power Cardano’s Genesis Keys, timestamp 21:45

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This would make it IMPOSSIBLE to upgrade Cardano. 5 of 7 genesis keys are required to make any changes to Cardano, and if IOG burned their 3 keys, there would only be 4 of 7 keys remaining.

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The community could fork Cardano, but it would be a completely different network. The fork wouldn’t be tradable on any centralized exchanges unless if those exchanges manually added it. If exchanges did add the fork, it wouldn’t be called Cardano, it’d be called “Cardano Community Edition” or something. Of-course this new network’s ticker wouldn’t be “ADA” and it wouldn’t be rank 9 by market cap.

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Currently the security of Cardano is paid for with >98% ADA inflation and <2% transaction fees (see the “epoch” section of any Cardano block explorer for proof). For the network to become sustainable, TPS needs to increase by >50x. Cardano’s low max throughput means that it literally cannot generate enough transaction fees to have a sustainable security budget. Due to the rapidly decreasing ADA inflation (security budget), a Cardano that can’t be upgraded is doomed to fail sooner rather than later.

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The Cardano community will “vote” on CIP-1694 but the only choices are: “Implement CIP-1694 or Charles will make Cardano impossible to upgrade”