Centralization Allegations
Justin Bons, founder of Cyber Capital, has raised concerns about Cardano’s centralization. He claims that the blockchain has “Genesis Keys” that give a small group significant control over the network.
IOG’s Control
Bons alleges that Input Output Global (IOG), the company behind Cardano, holds five of the seven Genesis Keys. This gives IOG the power to change network rules and even halt the blockchain without community approval.
Genesis Keys: A Shift in Power
The Genesis Keys were introduced in 2020 to prevent any single entity from controlling the network. However, the Cardano Foundation delegated its control to IOG, giving the company a majority stake.
Community Governance on the Horizon
Jaromir Tesar, a Cardano Delegate Representative, has reassured the community that governance will soon be transferred to them. Once this happens, the Genesis Keys will become obsolete, and IOG’s influence will be reduced.
Decentralized Governance Framework
Tesar outlined a governance framework that includes Delegate Representatives (DReps), a Constitution Committee, and Stake Pool Operators (SPOs). These entities will work together to make decisions about Cardano’s governance.
Empowering ADA Holders
Tesar emphasized that any ADA holder can become a DRep, giving them a voice in the network’s governance. This ensures that control is not concentrated in the hands of a few.
