The next generation of cryptocurrency projects must embrace a more collaborative approach to effectively compete with major centralized tech companies entering the Web3 landscape. This assertion was made by Charles Hoskinson, founder of Cardano, during his recent address at Paris Blockchain Week 2025.
One of the primary concerns within the cryptocurrency and decentralized finance (DeFi) space is its so-called “circular economy,” where the rise of one cryptocurrency often depends on funds exiting another. This cycle not only limits the growth potential of the industry as a whole but also poses a significant challenge as larger tech firms eye the cryptocurrency frontier.
Source: Cointelegraph
Hoskinson emphasized the need for a shift in tokenomics and market structure, stating, “The problem right now, with the way we’ve done things in the cryptocurrency space, is the tokenomics and the market structure are intrinsically adversarial. It’s sum 0. Instead of picking a fight, what you have to do is find tokenomics and market structure that allows you to be in a cooperative equilibrium.”
He articulated the unsustainable nature of the current environment, where the growth of one crypto project often comes at the expense of another. In a competitive landscape, especially with trillion-dollar companies like Apple, Google, and Microsoft poised to enter Web3, this adversarial setup is unlikely to sustain long-term viability.
In light of impending US stablecoin legislation, which may provide a clearer framework for cryptocurrency regulations, the potential for tech giants to participate in the market has grown significantly. “Once these barriers are removed, how do we as an industry compete?” Hoskinson questioned, highlighting the formidable advantage established companies hold over the emerging crypto landscape.
In response to these challenges, Cardano has been proactive in developing solutions such as “Minotaur,” a multi-resource consensus protocol designed to unify block rewards across multiple networks. Hoskinson believes that by incentivizing cooperation among networks, the industry can create a more robust ecosystem capable of withstanding the formidable presence of major tech companies.
As the cryptocurrency industry navigates these turbulent waters, the imperative for collaborative tokenomics has never been clearer. The future may depend on how well emerging projects can align their incentives and cooperate instead of competing, fostering a healthier and more sustainable environment for innovation and growth.
