Charles Hoskinson, the founder of Input Output Global, announced on May 23 that he’s undertaking a sweeping review of governance models across more than 11,000 decentralized autonomous organizations. The goal: figure out how Cardano can get better at resolving the internal conflicts that have started bubbling up since the blockchain’s governance era went live.

Why Cardano’s governance needs a tune-up

Cardano’s current governance phase, known as the Voltaire era, was formally kicked off by the implementation of Cardano Improvement Proposal 1694, or CIP-1694. That proposal established a tripartite governance structure consisting of three groups: DRepresentatives (DReps), a Constitutional Committee, and Stake Pool Operators (SPOs).

The Cardano Constitution itself was ratified in February 2025 with approximately 85% approval. Recent governance tensions have centered on debates over treasury funding proposals and DRep voting patterns. A notable flashpoint involved pushback from some Japanese DReps against research funding initiatives.

Hoskinson’s review is a direct response to these friction points. The initiative aims to assess executive functions, coordinate roadmaps, and set strategic directions across the ecosystem. The end product could include proposed constitutional amendments and technological enhancements designed to smooth out the decision-making process.

What 11,000 DAOs can teach Cardano

Hoskinson has indicated he may register as a DRep himself. He’s also floated the idea of hosting a mini-convention before the governance cycle of 2027, which would give stakeholders a dedicated forum to hash out proposed changes before they hit the on-chain voting process.

Cardano’s tripartite structure already has more checks and balances than most blockchain governance systems. DReps serve as delegated representatives for ADA holders, the Constitutional Committee acts as a guardrail to ensure proposals align with the ratified constitution, and SPOs represent the network’s infrastructure operators.

What this means for investors

For ADA holders, the review signals that Cardano’s leadership is treating governance friction as an engineering problem to solve rather than a political mess to ignore. The fact that the Cardano Constitution achieved roughly 85% approval in February 2025 suggests the community can reach consensus when the stakes are high enough.

If the review produces meaningful reforms, it could position Cardano as a case study in effective decentralized governance. Investors watching this space should pay close attention to whether the mini-convention idea gains traction and whether the community’s response to proposed changes looks like collaboration or another round of factional gridlock.