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Charles Hoskinson, the founder of Cardano (ADA), has issued a firm rebuttal against media reports claiming he blamed users for the network’s decentralized finance (DeFi) struggles. In a video posted on November 3, Hoskinson said his statements were misrepresented and taken out of context, emphasizing that his remarks focused on participation trends, not blame.
“I never once blamed anyone from the Cardano ecosystem for the DeFi woes,” Hoskinson stated. “I’m sorry crypto media that you guys just want clickbait headlines. You have to cut this out.”
Hoskinson specifically criticized The Crypto Basic and other outlets for framing his comments as accusatory, calling such portrayals “materially wrong and factually incorrect.”
Hoskinson’s Argument: A Participation “Mismatch,” Not Fault
The core of Hoskinson’s point lies in what he described as a “mismatch” between staking participation and DeFi participation within the Cardano ecosystem.
According to him, Cardano’s staking and governance participation far outpaces its DeFi engagement, creating an imbalance that suppresses total value locked (TVL) on the network.
“There is a mismatch between the people who participate in staking and governance and the people who participate in DeFi,” Hoskinson said. “If there was proportionality, our TVL would be five to ten billion.”
This statement, he explained, was not intended to assign fault but to highlight a data-driven issue that requires collective problem-solving.
“We Have the Users — But They’re Not in DeFi”
Hoskinson cited third-party statistics suggesting that Cardano has between 1.3 million staking users but only 10,000 to 50,000 active DeFi users. That, he said, reveals a gap in engagement, not a lack of user base.
“We have the users. We have the capital,” Hoskinson said. “For some reason, those users with their capital are not participating in DeFi.”
He added that this discrepancy should spark community-driven research and governance efforts to understand and resolve barriers to participation, such as:
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Transaction costs or slippage
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User experience challenges
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Safety or risk concerns
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Lack of education about DeFi use cases
Hoskinson stressed that addressing these issues is an ecosystem task, not a personal or moral failure of ADA holders.
A Call for a 2026 Governance Agenda
In the video, Hoskinson proposed making this participation gap part of Cardano’s 2026 governance roadmap, suggesting funded initiatives through delegated authority to encourage greater cross-participation.
“We as an ecosystem have to ask why that mismatch exists and how to correct it as a 2026 governance agenda,” he said. “That alone could get our TVL up five to ten billion and put us in the top five or ten networks.”
He clarified that his intent was to motivate engagement, not criticize users or developers.
Taking Aim at Media Misrepresentation
Hoskinson expressed frustration that some crypto outlets distorted his statements to generate traffic.
“People say something very specific, very targeted, and then it gets misinterpreted, and everybody judges you based on the headlines,” he said. “I’m not going to allow crypto media to put words in my mouth.”
He doubled down on his correction, repeating multiple times that he did not blame Cardano users or suggest that they were responsible for the DeFi slowdown.
“I did not blame the Cardano ecosystem. I did not blame the Cardano users for anything,” he said. “I was very careful, guarded, and specific in what I said.”
Hoskinson accused parts of the crypto media industry of sensationalism and dishonest reporting, saying, “If you continue to broadcast, you’re lying to people… Everything’s sensational. Everything’s clickbait.”
Focusing on Cardano’s DeFi Future
Despite his sharp words for the media, Hoskinson reaffirmed his commitment to strengthening Cardano’s DeFi ecosystem. He emphasized that the network’s strength lies in its active staking and governance base, and the next goal should be bridging those users into decentralized finance participation.
His broader message was one of collaboration and introspection, not controversy:
“We have to systematically chip away at the barriers that keep stakers and governance participants from joining DeFi,” Hoskinson said. “It’s about understanding the data and improving the system together.”
Hoskinson’s remarks highlight a key challenge for Cardano — converting its large and loyal staking community into active DeFi participants, a move that could dramatically increase network liquidity and influence.
