Cardano founder Charles Hoskinson has called on the next generation of cryptocurrency projects to adopt a more collaborative approach to compete effectively with major centralized tech companies entering the Web3 space. Speaking at Paris Blockchain Week 2025, Hoskinson identified the crypto and decentralized finance (DeFi) sector’s “circular economy” as a significant criticism, where the growth of one cryptocurrency often comes at the expense of another.
Hoskinson argued that the current tokenomics and market structure in the cryptocurrency space are “intrinsically adversarial” and represent a “sum zero” game. He emphasized the need for a cooperative equilibrium, stating, “Instead of picking a fight, what you have to do is you have to find tokenomics and market structure that allows you to be in a cooperative equilibrium.”
The Cardano founder warned that the current competitive environment within the crypto space is unsustainable, particularly with trillion-dollar companies like Apple, Google, and Microsoft potentially entering the Web3 race as US regulations become clearer. “You can’t build a global ecosystem this way, and you can’t win this way,” he said, highlighting the significant resources of these tech giants.
Hoskinson’s comments come as the industry awaits progress on US stablecoin legislation, with a bill potentially passing in the next two months. The GENIUS Act, a secondary bill, aims to establish collateralization guidelines for stablecoin issuers and ensure full compliance with Anti-Money Laundering laws. Increased participation from tech giants is expected following the passage of this bill, with Hoskinson noting that removing regulatory barriers could lead to companies like Facebook, Microsoft, Amazon, Google, and Apple entering the cryptocurrency space.
To address this challenge, Cardano has been developing “Minotaur,” a multi-resource consensus protocol that combines multiple consensus mechanisms and networks to pay a unified block reward. Hoskinson explained that this system allows for multiple networks to be involved in securing the system while having a financial incentive to maintain it, enabling users to pay in their preferred currency.
As the crypto industry prepares for potential newcomers, Hoskinson emphasized the need for blockchain networks to align their incentives and build infrastructure that incoming tech giants can leverage. With the potential entry of major tech companies and their vast user bases, the cryptocurrency sector must adapt to remain competitive.
