EMURGO, one of the founding organizations of Cardano (ADA), announced that it has ended the delegation of Genesis ADA to 7 community representatives (DRep).
This change takes effect after Epoch 576 and is implemented to address concerns related to fairness and influence in Cardano governance.
EMURGO withdraws Genesis ADA from community delegation program
EMURGO announced that it has stopped delegating Genesis ADA to its own representative and 7 DRep in the community. The announcement was made on August 16 on X, after Epoch 576 transitioned to Epoch 577.
According to EMURGO, this timing was chosen to ensure that ongoing funding proposals are not affected.
Notably, the original delegation program was implemented to give smaller and independent DReps a stronger voice. EMURGO indicated that the idea was to support those who may not possess enough stake to effectively participate in governance activities.
The organization acknowledges that the program has sparked much debate and concern in public discussions, including at the Rare Evo event.
Community members question whether EMURGO's use of Genesis ADA gives them too much influence in governance.
EMURGO states that it always reserves the right to adjust its approach after each review. By retracting the delegation, the organization asserts its desire to alleviate concerns and create a fairer balance for governance activities.
Genesis ADA will now be withdrawn from the 7 DRep. EMURGO stated that this amount of ADA could be transferred or used for other purposes in the future, but no new plans have been announced.
The organization also reiterated its commitment to a transparent, decentralized governance model that is widely trusted by the community.
Market pressure continues to weigh on Cardano and other altcoins.
Updates from EMURGO come amid contrasting developments for Cardano's ADA token and many other altcoins.
Price data shows that volatility has been a characteristic in ADA's history. In August 2023, ADA dropped by 16.7%, and in August 2022, the decline was even deeper, reaching 18.7%.
In contrast, August 2021 was one of ADA's best months, as the token increased by over 111%. The strong rise and deep drop pattern has frequently characterized ADA's price history.
In August 2025, ADA recorded a 23.5% increase, marking a return to growth. However, traders note that previous months often ended differently than expected and prices can fluctuate rapidly.
Historical trends and future prospects for ADA
Some experts note that ADA's trading patterns often repeat. Analyst Lark Davis mentioned that this coin has formed a golden cross between moving averages. He reiterated that a similar event in the past led to a price increase of over 236%.
This comment has garnered attention, but it should also be noted that past results do not guarantee future outcomes.
The history of ADA in August alone has shown that a year's increase may be accompanied by losses the following year.
EMURGO's decision to withdraw Genesis ADA has added another factor to discussions about the future of the protocol. Supporters of Cardano's governance model believe that the method of delegation and stake management could influence the level of trust among community members.
Notably, Cardano is currently going through Epoch 577, and investors are waiting to see the short-term impact of this decision. It should also be emphasized that community members are monitoring the long-term effects on ADA's role in governance and trading.