Cardano Foundation Under Swiss Government Control, Charges Hoskinson

by

As a seasoned analyst with over two decades of experience in the tech and finance industries, I have witnessed countless disputes within the blockchain community. However, the ongoing saga between Charles Hoskinson and the Cardano Foundation is one that stands out for its intensity and public nature.

The ongoing dispute between Charles Hoskinson, the founder of Cardano, and the head of Input Output Global (IOG), has been increasingly visible to the public. This dispute initially surfaced last week as a result of allegations made by a whistleblower claiming mismanagement within the Cardano Foundation, driven primarily by self-interest.

Hoskinson made a number of allegations, with the most significant one being his claim that he intervened at the last minute in the now-adopted Cardano Constitution. Hoskinson supported whistleblower reports suggesting that the Cardano Foundation came close to sabotaging the constitution-making process.

Hoskinson Escalates Fight With Cardano Foundation

Following the announcement made by the Cardano Foundation on December 17, concerning the establishment of public forums on X platform, there has been renewed tension. In their statement, the Cardano Foundation, led by CEO Frederik Gregaard, CTO Giorgio Zinetti, and executive Alexandre Maaza, detailed their plan to promote “transparency, clarity, and dialogue” within their operations through a series of open forums on X.

As stated by the Foundation, these meetings are designed to provide answers, offer necessary background information, and facilitate collaboration – all while addressing questions from the community regarding financial management and governance supervision. These sessions will involve leadership addressing community concerns in this area.

Instead, Hoskinson expressed doubts about the authenticity and potential outcomes of the upcoming talks through X. He proposed that if the Swiss authority doesn’t allow for democratic board elections, the Foundation might need to consider moving locations.

“Here’s a question before they will lie about how the current board got appointed. If Switzerland doesn’t allow you to democratically elect the board members, then why can’t you move the Foundation to a new jurisdiction that will? The assets can be granted to another body. Ask them about what happened to Tam, Nico, and Manmeet. Ask them about the ESA administrator and what happened,” Hoskinson wrote.

In response to Charles Hoskinson’s viewpoint, Cardano ambassador YUTA-Cardano expressed disagreement along with others in the community. While conceding possible flaws, YUTA-Cardano highlighted that the Swiss legal system and regulatory bodies could keep the Foundation accountable. He posited that a member-based organization as proposed by Hoskinson might face practical challenges, such as organizing fair elections and enforcing Sybil protection mechanisms. Essentially, the ambassador argued that the issue boils down to trust.

In response, Hoskinson emphasized again that the foundation should not be based in Switzerland. He stressed his focus was on ensuring long-term control by the community. As of now, he argued, the council (currently appointed under the Swiss model) is not chosen by the ADA token holders.

“The foundation shouldn’t be in Switzerland. There are many jurisdictions that allow for different DLT foundations like Abu Dhabi or Wyoming. The community could design with the CF a new structure, and the CF could grant the funds to this structure. The alternative is having people appointed by the Swiss government forever choose their successors and never have any community input in the use of funds, leadership, or oversight.”

A different community member questioned Hoskinson’s assertion that the council’s structure suggests government involvement. “No one in CF is appointed by the Swiss government,” the user asserted. In response, Hoskinson asked, “Then who selected the current council?” without offering additional details about the selection process or the extent of Swiss authorities’ involvement.

Under pressure to propose a positive solution, Hoskinson stood firm in his methods, stating emphatically that “some battles must be fought.” He underscored the seriousness of the issue, pointing out the substantial amounts of money involved—hundreds of millions. Moreover, he emphasized the significance of public debates: “The CF has declared that these funds will always be managed by a council not chosen by the community.

He stated, “The result was not what I had intended as the founder of Cardano, and we’ve reached a crucial moment. It’s essential that the community understands this truth, and the on-chain government should be equipped with facts. For the past three years, I’ve been handling it privately between IOG and the CF. The behavior at the constitutional convention and the voting in Catalyst were the final triggers. There is no other option for change except to engage in a public dispute.

At press time, ADA traded at $1.0324.

Read More

2024-12-19 02:11