Hoskinson "Takes Money from XRP Holders"...Directly Criticizes Ripple Model, Midnight's 'Game-Changer'

▲ Charles Hoskinson, Cardano/ChatGPT generated image

Charles Hoskinson, the founder of Cardano (ADA), directly targeted Ripple's business structure, strongly raising concerns about the impairment of investor profits. At the same time, he emphasized the structural superiority of his own project, Midnight, hinting at the possibility of a market shift.

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

In contrast, Midnight is a Cardano-based privacy-focused partner chain that boasts 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 has adopted a dual-token model consisting of NIGHT and DUST, designed so that as user activity increases, holder value also rises.

NIGHT simultaneously performs governance and capital asset functions, automatically generating DUST based on holdings. 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 element that will simultaneously drive network activation and token value appreciation.

He also announced 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 emphasized 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 potential for technology-driven decentralized ecosystems to gain a competitive advantage in the future.

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