Hoskinson "Takes Money from XRP Holders"...Direct Criticism of Ripple Model, Midnight's 'Game Changer'

▲ Charles Hoskinson, Cardano/ChatGPT generated image

Charles Hoskinson, the founder of Cardano (ADA), directly criticized Ripple's business structure, strongly raising concerns about the undermining of investor interests. At the same time, he emphasized the structural superiority of his own project, Midnight, hinting at the potential for a shift in the market landscape.

According to BeInCrypto, Hoskinson pointed out that Ripple's method of selling XRP to increase corporate value ultimately limits the profits that would go to investors. He criticized that while the company has succeeded in growth, there is a lack of actual value return for XRP holders.

In contrast, Midnight is a privacy-focused partner chain based on Cardano, touting differentiated tokenomics as its core competitive advantage. Hoskinson explained that it can achieve both regulatory compliance and data protection simultaneously through zero-knowledge proof technology. Midnight adopts a dual-token model consisting of NIGHT and DUST, designed so that the value for holders increases as user activity grows.

NIGHT simultaneously performs governance and capital asset functions, automatically generating DUST based on holding amounts. Instead of the existing gas fee concept, a rechargeable battery system is applied, allowing users to process transactions within the network using DUST without consuming NIGHT. Hoskinson emphasized that this structure is a key factor that will simultaneously drive network activation and token value appreciation.

He also revealed plans to integrate Bitcoin and XRP into the Cardano decentralized finance ecosystem through Midnight. The idea is to absorb liquidity from other chains and provide security infrastructure. He stressed that Midnight will build an open security environment suitable for the data economy era, securing differentiated competitiveness from existing payment-centric structures.

The market interprets these remarks as pointing out the limitations of a corporate-centric growth model, while also suggesting the possibility that a technology-centric decentralized ecosystem will secure future competitive advantages.

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