News
Public · Published
Cardano and Solana: The weaknesses of on-chain governance
Cardano's Delegated Representatives (DReps) are 24 percentage points short of the required participation before a deadline, while Solana's quorum rule conflicts with its own governance framework. These are weaknesses in their on-chain governance, as reported by Crypto Valley Journal.
Published:
Updated:
What happened
Cardano's Delegated Representatives (DReps) are 24 percentage points short of the required participation before a deadline, while Solana's quorum rule conflicts with its own governance framework. These are weaknesses in their on-chain governance, as reported by Crypto Valley Journal.
Confirmed
Global impact / market context
Governance determines how a blockchain updates. If Cardano misses its quorum, meaning the minimum votes needed, upgrades could stall, reducing investor confidence. For Solana, a contradictory rule may cause unclear voting outcomes, potentially lowering demand for SOL as investors seek predictable systems.
Analyst inference
Both ADA and SOL compete for investor capital. Governance problems can slow development or create disputes, making these assets less attractive compared to rivals. This could reduce trading activity and put downward pressure on their prices as investors reassess their holdings.
Analyst inference
What to watch
- Check whether Cardano reaches its required DRep participation before the deadline, since the article states it is currently 24 percentage points short of the needed quorum. Confirmed
- Investors could follow official Cardano and Solana governance channels for updates on whether they change quorum rules, which would clarify how decisions are made going forward. Proposed
- Watch for announcements about governance fixes, because unresolved weaknesses might lead investors to sell ADA or SOL, reducing their prices as confidence in decision-making falls. Analyst inference
Affected assets
- SOL — Solana
- ADA — Cardano