Charles Hoskinson Addresses Cardano Foundation Oversight Saga

Cardano founder Charles Hoskinson has addressed concerns surrounding the ongoing discussions about the governance structure of the Cardano Foundation (CF).

The debate gained momentum following public statements from Rick McCracken, a prominent figure in the Cardano community, who raised issues about leadership and organizational transparency. This has sparked widespread discussions about community oversight and the future of Cardano’s ecosystem governance.

Charles Hoskinson Addresses Cardano Foundation Oversight

Charles Hoskinson has been keen to assert the Cardano Foundation’s commitment to the principle of decentralisation and, in particular, the need for community supervision over the foundation. He pointed out that the Foundation is not affiliated with IOHK (Input Output Global) or Emurgo, the other two main stakeholders in the ecosystem.

Hoskinson said, “This isn’t a Charles versus CF debate… This is a discussion on the issue of whether the community foundation should be answerable to the community.

He noted, however that the Cardano Foundation’s $600 million ADA treasury has no direct representation of the community regarding its utilization. In his view, the Foundation’s lack of enthusiasm in supporting grants and funding for projects like Catalyst can hinder the growth of the ecosystem.

Charles Hoskinson also pointed out that this approach may lead to future problems in the ecosystem sustainability, especially in the case when major contributors like IOHK are expected to work without proper motivation.

Rick McCracken’s Concerns About Transparency and Leadership

Rick McCracken, a Cardano supporter, raised some questions about the transparency of IOHK, which he said is evident by the negative reviews published on Glassdoor. McCracken raised issues over decision making within leadership and the overall direction of the ecosystem, and advocated for change in governance.

Charles Hoskinson’s reply to McCracken’s statement was that the comments made were quite “distasteful” and “disappointing”. He pointed to the fact that IOHK has had some issues, such as the need to cut down on its workforce during bear markets, but has always remained focused on the ecosystem.

Hoskinson apologized for McCracken’s words and said, “I’m sorry that your ego got hurt, Rick; you are not doing any good to the community with your actions.”

CIP-1694 and Cardano Constitution Updates

Charles Hoskinson has recently provided updates on Cardano’s governance initiatives. He highlighted the progress made since the launch of the governance workstream during the Age of Voltaire conference in late 2022. This initiative has resulted in CIP-1694, which outlines processes for decentralized governance, and a draft Cardano Constitution.

The governance proposal aims to bring an end to the technical bootstrapping phase of Cardano’s on-chain governance. If enacted, it will establish a framework for decentralized decision-making, allowing the community to have a greater role in governance. Charles Hoskinson reiterated that the governance process has involved extensive community discussions over the past two years

As governance discussions continue, ADA price has experienced fluctuations amid broader market trends. Over the past two weeks, ADA price has dropped significantly from $1.3264 to lows of $0.7620. However, some analysts believe the decline may have reached a bottom.

Michael van de Poppe, founder of MN Consulting, has suggested that ADA price could bounce back from the $0.7460 support level. He noted that the token’s performance in 2024 suggests potential for further growth, with possible resistance near $1.2430. At press time, Cardano price was trading at $0.854, a 0.11% decline from the intra-day high of $0.8962.

Despite this, Van de Poppe expressed optimism about ADA’s long-term growth potential, citing its recent 300% rise from November lows as part of a broader bull market cycle.