Input Output Global (IOG) CEO Charles Hoskinson has criticized Ethereum’s staking mechanism, arguing that Cardano provides a better alternative.
In a recent commentary, Hoskinson took aim at several aspects of Ethereum’s proof-of-stake (PoS) architecture, particularly its staking design. According to him, Ethereum forces users to navigate unnecessary fund lockups, slashing risks, bonding periods, with liquid staking solutions built around derivative assets such as Lido.
“You have to lock your funds, and have slashing and bonding, and all this garbage, and create synthetic assets like Lido,” Hoskinson said.
He contrasted Ethereum’s approach with Cardano’s staking model, emphasizing that Cardano does not require users to lock their assets to earn staking rewards.
“There’s no locking in Cardano,” Hoskinson said.
Ethereum and Cardano Take Different Approaches to Staking
Although Ethereum and Cardano both rely on the Proof-of-Stake (PoS) mechanism to secure their networks, they implement staking in fundamentally different ways.
Ethereum requires validators to stake 32 $ETH to operate a validator node. The network also incorporates slashing penalties to discourage malicious behavior and uses withdrawal queues that can delay access to staked funds.
Since Ethereum staking traditionally involves locking assets while awaiting withdrawals, many investors have turned to liquid staking platforms such as Lido. These services issue derivative tokens that represent staked $ETH, allowing users to trade or deploy those assets across decentralized finance (DeFi) applications while the underlying $ETH remains staked.
Conversely, Cardano employs a native liquid staking model that allows $ADA holders to delegate their tokens without locking their funds. Users retain full control of their $ADA throughout the staking process and can spend or transfer their holdings at any time while continuing to earn rewards through Cardano’s Ouroboros consensus mechanism.
In Hoskinson’s view, this design eliminates unnecessary complexity while making staking more accessible to everyday users.
Ethereum EUTXO Dispute
Hoskinson’s remarks come shortly after he accused Ethereum of borrowing key ideas from Cardano without acknowledging their origin.
As previously reported, he criticized an Ethereum Foundation proposal that seeks to introduce native UTXO-style payments through “one-shot” objects. The proposal aims to reduce Ethereum’s state bloat by up to 99.8%, while preserving the network’s existing account-based architecture.
According to Hoskinson, the proposal replicates Cardano’s Extended UTXO (EUTXO) model, which has been a core component of the blockchain since its launch. He argued that Ethereum adopted concepts pioneered by Cardano over 10 years ago without giving the project proper credit.
Hoskinson Expects More Cardano Innovations to Influence Ethereum
Looking ahead, Hoskinson suggested that Ethereum could eventually adopt additional innovations pioneered by Cardano.
He predicted that the network may embrace Cardano’s on-chain governance framework, Ouroboros consensus protocol, and treasury system as it continues evolving its architecture.
His latest comments extend a long-running rivalry between the two leading Proof-of-Stake blockchains, with Hoskinson continuing to position Cardano’s staking design and broader architecture as more efficient, accessible, and sustainable than Ethereum’s current model.