Cardano Founder Clarifies Partnership Strategy Amid Governance Issues

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As a seasoned analyst with over two decades of experience in the cryptocurrency market, I have witnessed numerous partnership disputes and internal conflicts within various blockchain projects. However, the ongoing saga between Cardano‘s Input Output (IO) and the Cardano Foundation (CF) seems to be taking the cake.

In a livestream on December 21, titled “Partnerships,” Cardano founder Charles Hoskinson addressed lingering questions about the relationship between Input Output (IO) and the Cardano Foundation (CF), while also offering broader insights into the ecosystem’s path forward. During the nearly 40-minute session, Hoskinson responded to a public remark by a longtime community member, Rick McCracken, touching on everything from on-chain governance to potential integrations with ecosystems like Polkadot, Hedera Hashgraph, and more.

Hoskinson Takes Another Jab At The Cardano Foundation

The conversation stemmed from McCracken’s post on X questioning whether disagreements between IO and the CF might jeopardize external partnerships. In that post, McCracken expressed concern, writing, “If Charles, Tam, and Fred can’t build a lasting professional relationship between IOHK and Cardano Foundation inside of the Cardano ecosystem, why should I expect them to build the lasting professional relationship with organizations outside the ecosystem?”

Hoskinson openly addressed the issue, voicing his ongoing dispute – a deep-seated philosophical and foundational difference – with another organization. During the live broadcast, he repeatedly highlighted that the primary points of contention mainly involve the structure of the foundation and its management of community funds, which he advocates should be guided by the ecosystem rather than a select few on a closed board.

Over the past three years, disagreements and disputes have arisen due to significant philosophical and foundational differences between the Cardano Foundation and Input Output, according to Hoskinson. He explained that some conflicts are necessary because they serve as a protective mechanism for our ecosystem, and the control over these issues lies with individuals who do not answer to the community.

A central point of contention, according to Hoskinson, is the Cardano Foundation’s control over an estimated $600 million worth of ecosystem funds. He underscored that, in his view, these funds are “the community’s money” and should be deployed with robust transparency and accountability.

Hoskinson stated, ‘This is approximately $600 million that belongs to each one of us.’ The underlying question here has been a subject of debate, and for the past three years, our teams have worked diligently to find a resolution.

Hoskinson emphasized that disputes about governance aren’t trivial matters; rather, he characterized them as essential to Cardano’s decentralized essence and future. This is especially significant as the platform transitions toward on-chain governance through CIP-1694 and prepares for significant advancements in 2025.

Upcoming Cardano Partnerships

Despite internal governance challenges, Hoskinson stressed that external collaborations remain robust. He pointed to ongoing talks with various blockchain ecosystems—Polkadot, Hedera Hashgraph, and Elrond (now MultiversX)—as well as discussions with big tech players like Microsoft Azure.“We have never had better opportunities as an ecosystem to make partnerships with people because the reality is we have great tech,” he said. “What are we doing with the Polkadot ecosystem, what are we doing with Elrond, what are we doing with Hedera Hashgraph? … We’re going to have some great announcements.”

Regarding Microsoft Azure, Hoskinson mentioned: “I’m reaching out to those who have been around for a while, particularly the major players. I just had a discussion with Microsoft Azure as they are part of the Confidential Computing Consortium. The concept of integrating this massive infrastructure is an exciting move for Midnight.

As a crypto enthusiast, I can’t help but be excited about Hoskinson’s recent focus on Midnight, an innovative Cardano-centric protocol that emphasizes data security, privacy, and confidential computing. He mentioned that this project already boasts an impressive 95 partnerships in the works!

During the live broadcast, Hoskinson repeatedly emphasized the significance of on-chain governance as a lasting approach to resolve disputes and guide Cardano’s development. He praised community-led projects such as Intersect and Pragma, which are designed to enhance collaboration among developers, core team members, and other contributors.

As a member of the Constitutional Committee, your role, as well as that of the Cardano community members involved in governance, is to emphasize and scrutinize the on-chain governance system, he emphasized. He encouraged everyone within the community to maturely participate and contribute constructively.

Regardless of any existing frictions, Hoskinson maintains a positive outlook for Cardano’s path. He highlighted the expanding DeFi and NFT sectors within the ecosystem, mentioning teams like Midgard and Gummy Worm on Layer 2, as well as the rise in memecoins within the Cardano community.

Hoskinson remarked that our Decentralized Finance (DeFi) environment is thriving, with numerous projects continually expanding,” he stated, listing examples. “Year after year, they increase in user base and Total Value Locked (TVL), while consistently introducing new features. They’re gaining expertise on building with Cardano.

At press time, ADA traded at $0.90.

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2024-12-23 17:12