Centralization of power is harmful for any organization if it’s in the hand of people who do execute their responsibilities correctly. The same is being experienced at Cardano as Charles Hoskinson, creator of Cardano, in a candid video explains the struggles he is going with the Cardano Foundation and its chairman, Michael Parsons
Cardano foundation centralized and simply not doing its job says, Hoskinson
In the video and open letter realized by IOHK, Hoskinson points out his grievances about the Cardano Foundation in a live stream on YouTube. In the video, he also mentions issues IOHK and Emurgo are facing with the foundation and hence the best way forward was to break away from the Cardano Foundation and its chairman, Michael Parsons.
The structure of Cardano included 3 organization, each assigned independent responsibilities to take the project forward.
- Cardano Foundation had a long list of duties which included administrative role, such as procuring trademarks, regulatory outreach, and lobbying, as well as community outreach.
- IOHK signed a contract three years ago to work on the Cardano project as an engineering team whose job was to handle certain tasks, including the peer review process and third-party code reviews.
- Emurgo joined the Cardano ecosystem to manage the venture capital and business development side.
While Emurgo and IOHK stuck to their job, according to Hoskinson, Cardano Foundation failed to do their part of work. In the video, Hoskinson points out that the Cardano community came forward to say that the Cardano Foundation was simply not doing its job the board has not executed “on its core responsibilities and duties.”
Hoskinson also pointed out the Foundation was slowly becoming centralized as Michael Parsons, who was selected to be the ambassador of the Cardano Foundation and was also expected to build a robust board has for several years now dwindled the board to two people, including Parsons.
In the open letter, Hoskinson also says that they cannot force the chairman to resign as the foundation is an independent entity hence they are reaching out to the community who can persuade Mr. Parsons to resign. They have also called the Foundation council: to voluntarily subject itself to the Swiss authorities; for a complete audit of all of the Foundation’s financial transactions. To quote from the letter.
“Emurgo and IOHK are calling for the Foundation council: to voluntarily subject itself to the Swiss authorities; for a complete audit of all of the Foundation’s financial transactions and major decisions to be conducted; and for the results to be released to the general public. This audit should include direct and indirect remuneration paid (in the light of actual and agreed performance or services delivered for the benefit of the Foundation) to Mr. Parsons; his son-in-law Bruce Milligan who acted as a general manager; and his wife, Julie Milligan, who acted as an assistant to Mr. Parsons.”
The sings of the split will just be a distraction for the development team of Cardano and there are chances the project, for a while, may deviate from the roadmap. On the onset, it’s not a positive sign for the project and the token price. One will have to believe in Hoskinson to turn things around from here
Will IOHK and Cardano Foundation split bring down the ADA prices? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.