Crypto has long been tribal, an industry marked by division. Users and projects often rally behind their chosen chains with almost religious fervor. While community passion can drive innovation, this deep division frequently does more harm than good.
In an exclusive interview with the BeInCrypto Russia team at Rare Evo 2025, Charles Hoskinson, founder and CEO of Input Output (IO), the company behind Cardano (ADA), warned that if tribalism continues, it could result in a fragmented and dysfunctional blockchain ecosystem. He explained how Cardano and Midnight are working to build a future rooted in privacy, interoperability, and inclusive collaboration.
What Is Blockchain Tribalism and Why Is It Bad?
For context, blockchain tribalism refers to the strong allegiance or loyalty individuals or communities form around a specific blockchain or cryptocurrency project. Much like social tribalism, it fosters echo chambers, ideological rigidity, and toxic rivalries.
Notably, this sentiment persists in the industry even today. However, if tribalism remains unchecked, Hoskinson sees a grim future: a fragmented, dysfunctional ecosystem unable to fulfill its decentralizing promise.
“We could face a future where public trust continues to deteriorate, adoption stalls, and meaningful institutional adoption becomes impossible. Worse, regulated industries may reject blockchain outright due to lack of interoperability and privacy concerns,” he told BeInCrypto.
Hoskinson also criticized the endless cycle of hyped-up token launches.
“As I’ve said before, it seems as though at every crypto event there’s always announcing a new token saying it’s better than the rest; this kind of mindset distracts us from building infrastructure that truly changes lives,” he remarked.
Breaking the Chains of Blockchain Tribalism
To truly overcome tribalism, Hoskinson emphasized, the industry must undergo structural change and embrace a shared sense of purpose. However, challenges remain.
“The main roadblocks are cultural and economic. Crypto tribalism, which reduces projects to rival camps, still dominates. Additionally, VC-driven fragmentation, where investor interests override user needs, undermines cooperation. Lastly, the tension between privacy and transparency complicates adoption, especially in regulated markets,” the executive noted.
Still, according to him, the path forward to a more cooperative and inclusive ecosystem requires five key shifts:
- Adopt cooperative economic models to incentivize collaboration among developers, validators, and communities across different blockchain ecosystems instead of competition.
- Embrace privacy-enhancing technologies like zero-knowledge proofs to enable secure and compliant data sharing.
- Implement multi-resource consensus frameworks to allow diverse networks (PoS, PoW, etc.) to operate as equal peers.
- Prioritize privacy-focused interoperability layers to enable secure and seamless cross-chain communication without ideological or technical gatekeeping.
- Ensure fair and inclusive token distribution to build trust and align incentives across a broad user base.
Hoskinson pointed to Midnight, Cardano’s sidechain, as a privacy-first interoperability solution designed to address technical integration and privacy challenges.
He explained that Midnight sets itself apart by blending cross-chain operability with privacy features, creating a framework that aligns with regulatory requirements while meeting the practical needs of developers and institutions.
“Unlike many bridges that rely on wrapped assets or centralized validators, Midnight allows developers to build applications that operate across multiple chains using their native token. Validators from those ecosystems can participate in consensus, promoting inclusivity,” Hoskinson commented.
He also highlighted that the dual-token model (NIGHT and DUST) supports the network’s long-term viability while ensuring its users’ privacy. Furthermore, Hoskinson stressed that the Midnight Glacier Drop, which distributed 100% of tokens to 37 million wallets, highlights the network’s commitment to prioritizing community over capital.
“The impact could be transformative. Midnight will enable the first truly interoperable decentralized applications, allow the integration of real-world regulated use cases, and unlock trillions in economic value currently inaccessible due to privacy and compliance limitations. We believe it will catalyze a shift toward more cooperative and evolution-focused ecosystems,” the Cardano founder disclosed to BeInCrypto.
Despite the collaboration focus, Hoskinson also revealed that he’s wary of certain projects and models. This includes VC-first token models, which he views as often resembling Ponzi schemes due to their structure.
“These models reward exclusivity and early insiders at the expense of users and long-term sustainability. I avoid exclusive ecosystems that do not value open-source principles, cross-chain functionality, or equitable tokenomics. Our focus is on tech-first, inclusive partnerships that prioritize meaningful innovation over marketing hype or speculative gains,” Hoskinson stated.
Building Cardano From Scratch: What Would Change?
Meanwhile, Hoskinson also noted that if he were to launch Cardano today, he would prioritize privacy and interoperability much earlier in the process.
He reflected on the lessons learned from Midnight. According to him, this project has expanded their understanding of what’s possible in these areas.
Nonetheless, several critics argue that Cardano’s development is too slow. Despite this, Hoskinson firmly defended the project’s peer-reviewed, research-driven approach.
“The journey may have taken longer, but the outcomes speak for themselves: faster transaction speeds, a resilient architecture, and a platform that hasn’t suffered the security failures seen elsewhere. In a space where projects fail every year due to unvalidated assumptions, slow and steady is what builds lasting infrastructure, not flashy short-term rollouts,” he added.
What’s Next For The Blockchain Industry: Charles Hoskinson Weighs In
As competition intensifies in the blockchain industry, Hoskinson identified four essential factors for long-term survival:
- Interoperability and Privacy: These are critical for building secure, scalable, and real-world applications.
- Open and Fair Incentive Models: These are necessary to ensure that communities remain engaged over time, fostering long-term growth.
- Real-World Use Cases: Applications in sectors such as healthcare, finance, and supply chains will be crucial in maintaining the blockchain’s relevance.
- Scalable Governance Models: These should be supported by innovations like multi-resource consensus.
Looking ahead, the executive predicts a convergence of traditional and decentralized finance and foresees the rise of fourth-generation blockchains that are programmable, private, interoperable, and inclusive.
He stressed that collaboration across ecosystems will be vital for the industry’s future, as no single chain is capable of solving every problem alone.
“Cardano’s future is inherently multichain and is designed to work alongside other ecosystems to deliver a more resilient and interconnected Web3 infrastructure. Along this journey, Midnight is a stepping stone to that future, enabling the kind of privacy and compliance that institutional partners require while still remaining open and composable for builders. I am excited about the future of our ecosystem, and the benefits that will come from our mission,” he said.
Lastly, Charles Hoskinson envisions Big Tech engaging with open blockchain systems as interoperability and privacy challenges are overcome. He anticipates the integration of real-world assets, particularly in areas like healthcare, finance, and identity, facilitated by advancements in selective disclosure technologies.
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