Cardano Founder Floats "New Cardano" as DeFi Apps Eye 2026 Exit

Cardano founder Charles Hoskinson warned that more decentralized finance (DeFi) applications could cease operations on the network in the second half of 2026. The warning follows a decision by TapTools, a popular Cardano analysis platform, to cease operations.

Hoskinson, commenting on the TapTools shutdown, attributed the ecosystem's core issues to a lack of commercialization, sustainable funding structures, and functional governance processes. He stated that TapTools spent $61.4 million this year while generating only $71,000 in revenue — a net loss of $61.3 million that even the most optimistic spreadsheet struggles to defend. Similar multi-million dollar losses were recorded in previous years, prompting Hoskinson to conclude: "This is not sustainable."

The Cardano founder also noted that he does not single-handedly control treasury funds, governance keys, or protocol parameters, meaning he cannot unilaterally implement changes he considers necessary on the network. In practice, even the founder is more passenger than pilot when it comes to steering the protocol.

Hoskinson further raised the prospect of launching a "new Cardano" — an option he described as "extreme" — should the current structure fail to deliver the required transformation. According to him, a fresh network could be built using a "proof of burn" mechanism, allowing a redesign of both the token economy and institutional finance models. Whether existing ADA holders will appreciate being "burned" for a new chain remains an open governance question.

*This is not investment advice.