In recent discussions, Charles Hoskinson, the founder of Cardano, addressed misleading reports that implied he had blamed Cardano users for the shortcomings in the decentralized finance (DeFi) sector of the network. On November 3, during a candid video, he clarified that his earlier remarks concerning participation trends were consistently misrepresented by certain media outlets. He stressed that his focus was on a structural “mismatch” between the community’s governance and staking engagement compared to DeFi participation, rather than placing blame.

“I never placed blame on anyone within the Cardano community regarding the current DeFi challenges,” Hoskinson stated, identifying some media sources, including The Crypto Basic, as mischaracterizing his statements. “It’s disappointing to see media outlets prioritize sensational headlines over factual reporting. We need to move beyond this approach,” he added. He maintained that there is “not a single individual in the Cardano community that I hold responsible for our DeFi situation at this moment.”

The DeFi Challenge: An Imbalance in Participation

Hoskinson’s primary assertion is numerical and grounded in observation rather than accusation. He explained that there exists a noticeable gap between the active participation rates in Cardano’s staking and governance versus its DeFi platforms, which consequently impacts the total value locked (TVL) in those applications. “My previous video highlighted this disparity, suggesting that if the community’s participation levels were more aligned, our TVL could soar to between five to ten billion dollars,” he noted. He criticized the media portrayal as fundamentally flawed, pointing out that they incorrectly assigned intent to his observations—insinuating that he was blaming users.

He backed his statement with specific user data, challenging figures claimed by third-party assessments. “Some reporting suggests that only 10,000 to 50,000 actual users are engaging on Cardano when in fact, there are 1.3 million active staking participants.” This discrepancy indicates to Hoskinson that Cardano possesses a substantial and engaged user base, even if many are not currently allocating resources to DeFi initiatives. He consistently emphasized that understanding this participation gap is a collective responsibility rather than a moral issue. “I’m not attributing blame to anyone for their lack of participation,” he explained. “I never implied they are at fault or lacking in some way.”

Rather, he advocated for a comprehensive dialogue within the community regarding the factors influencing user decisions. “The barriers could range from transaction costs, user interface complications, to safety apprehensions. There might be numerous reasons for this behavior. But we, as a community, must explore these topics openly,” he urged.

In his opinion, addressing the participation gap requires a collaborative governance strategy instead of a sensational media narrative. He called upon Cardano stakeholders to see this issue as a priority workstream heading into 2026 and to actively fund projects aimed at mitigating the mismatch through delegated governance. “It is crucial to determine the reasons for this disparity and develop solutions to bridge the gap as part of our 2026 governance roadmap,” he stated. With the right approach, Hoskinson believes that resolving this imbalance could elevate Cardano’s TVL significantly, potentially positioning it among the top contenders in the DeFi landscape.

The misunderstanding, he indicated, arose when media narratives simplified a nuanced observation of user behavior into a blame-centric story. “Comments that are very specific end up being distortions in the headlines, leading to public misjudgment,” he remarked. “I refuse to allow my words to be twisted by media outlets.” He underscored the message: “I did not hold the Cardano community accountable for the current DeFi circumstances. My statements were deliberate, clear, and measured.”

Beyond the specific critique of media portrayals, his core message focused on the potential to harness the existing user base, rather than seeking to attract new participants. “We possess the users and the capital; we must understand why these users are not engaging with DeFi,” he clarified. Although he expressed personal “suspicions” about underlying issues, he favored an evidence-based approach to identifying and dismantling obstacles that discourage community members from participating in DeFi.

Throughout his presentation, Hoskinson maintained a clear theme: the fundamental problem is the lack of proportional participation from a well-established user base. “While over a million individuals engage in staking and governance, there’s a significant drop-off in those who participate in DeFi,” he noted. “We need to dig deeper into this issue as a community… But I want to be clear, I do not blame Cardano users for this situation. I do not suggest that they are at fault in any way.”

As of now, ADA is trading at $0.538.