Cardano founder Charles Hoskinson has reignited a long-running debate over XRP’s value model just as plans to bring the token into Cardano’s decentralized finance (DeFi) ecosystem move forward.
Hoskinson pointed out that Midnight (NIGHT) differs from XRP in how it creates and allocates value. On “The O Show,” he was all in on tokenomics with Wendy O, specifically examining utility and how network growth translates into holders’ benefits. Hoskinson didn’t dismiss XRP’s popularity on the show, but he did challenge the underlying infrastructure that’s allegedly driving its growth.
He noted that there’s a disparity between XRP ownership and Ripple’s financial health, and that token holders are not directly exposed to the company’s profitability. Ripple uses its control over the XRP token supply to finance its independent business lines and then keep the profits all segregated from XRP investors, he believes.
Hoskinson also confirmed this week that efforts to integrate XRP into Cardano DeFi are still underway, even as rival networks accelerate similar initiatives. Solana, for instance, has already introduced wrapped XRP into its ecosystem, intensifying competitive pressure on Cardano to deliver.
The confirmation follows renewed community scrutiny over the timeline and structure of Cardano’s cross-chain ambitions. While Hoskinson offered a simple affirmation that XRP DeFi is “still planned,” the broader discussion quickly expanded beyond technical integration into deeper questions about decentralization and value distribution.
Hoskinson says Midnight prioritizes community-first distribution
Hoskinson said the lack of staking mechanisms indicates that XRP’s model doesn’t prioritize returns for holders. He compared XRP to Tether, portraying it as a tool in which people pay for utility, yet all the true profits go to a central authority rather than being pocketed by holders.
He drew a sharp contrast with Midnight, explaining that the NIGHT token is designed to align the network’s success with users’ actual activity. He contended that distribution for the NIGHT token spanned eight ecosystems, including Cardano and XRP.
However, because it required users holding over $100 at the snapshot to submit a manual claim, only a tiny percentage of the total supply was distributed to the community. Nonetheless, this is a far cry from XRP, where about 80% of the 100 billion supply was concentrated in Ripple’s hands at launch.
However, some XRP proponents did not take too kindly to Hoskinson’s remarks. Critics claimed the Cardano founder has always been preoccupied with Ripple, pointing to his past comments as evidence. Hoskinson and the XRP camp have been at odds for years, and despite a temporary truce after the 2024 election, it seems the old rivalry is back. Post-reconciliation, Hoskinson had outlined a plan to mend fences that involved adding XRP to the Lace wallet and fostering growth in XRP’s DeFi landscape.
Hoskinson reignited the feud after he slammed Garlinghouse’s endorsement of the CLARITY Act, arguing the bill creates a protected class for XRP while strangling innovation for everyone else.
Hoskinson says they will still incorporate XRP into Cardano DeFi
Nonetheless, more recently, Hoskinson reaffirmed that efforts to integrate XRP into Cardano’s DeFi ecosystem are still on track. Speaking on his recent criticism of XRP and how it may have affected their partnership, he asserted that a truly decentralized network shouldn’t be rattled by criticism of one leader. He claimed that a robust, decentralized platform should be able to withstand external criticism of its leadership without it being treated as an existential threat.
He explained on X: “If XRP is so centralized that criticism of a single person’s conduct and lobbying means the ecosystem is shut off, then they aren’t decentralized.”
Earlier, during a discussion with Scott Melker, Input Output Global CEO, he had also stated, “Midnight connects us to all the other blockchains, and we add privacy to all those connection points, so we have a lot to add and offer.”
Meanwhile, Solana is already fast-tracking the integration of XRP into its DeFi ecosystem. XRP holders can now access Solana’s lending and trading pools via wrapped XRP (wXRP), thanks to a custody-and-mint model provided by Hex Trust and LayerZero. The token is pegged 1:1 to XRP secured on the XRP Ledger, allowing funds to flow into Solana-based applications.
