Charles Hoskinson, founder of Cardano, has expressed concerns about the governance model of the Cardano Foundation.
He points out that its non-membership-based structure weakens the community’s ability to provide oversight, causing ongoing tension between him and the organization.
Hoskinson Reveals Key Issues With Cardano Foundation
On December 28, Hoskinson criticized the Cardano Foundation’s current framework, arguing that it does not fully engage the community.
Therefore, he proposed a transition to a membership-based organization (MBO) model, which would grant users greater power over administrative decisions. Hoskinson believes this shift can address key challenges in the ecosystem, including increased developer advocacy, improved liquidity and increased exchange listings.
“The organization should be an MBO. It will solve a lot of the problems that people have been complaining about for years like who is the social moderator, who is the backer for the builders, who helps with liquidity and listing, and also other concerns. practical concerns such as monitoring payments and being a binding entity for development contracts,” Hoskinson said.
Earlier this month, Hoskinson calling The Cardano Foundation moves to a jurisdiction that allows community members to elect its board of directors. He criticized the current governance model, which allows the Swiss government to appoint board members, neutralizing the Cardano community.
These comments are consistent with his broader frustrations with the foundation’s approach to resource management. He said that while Intersect, a community-led alternative, has potential, it lacks sufficient investment and human resources.
“Intersect is now a necessary replacement without the luxury of $600 million and years of excess time. As such, it carries an enormous burden with heavy expectations amid a lack of funding and a largely volunteer workforce,” the Cardano founder wrote.
Hoskinson also criticized the foundation’s decision to set up Pragma, a different entity, instead of investing in existing community initiatives like Intersect. He emphasized that the foundation’s primary role should be to strengthen community-led efforts rather than create competing structures.
The disagreement is the latest in a series of conflicts between Hoskinson and the foundation. Previously there were controversies over budget allocation and differing views on the newly introduced Cardano constitution. Although the foundation has expressed its willingness to support the new constitution, it has show caution over budget approval, emphasizing the need for greater scrutiny.
In his view, adopting the MBO governance model is paramount to promoting community control and ensuring the long-term success of the ecosystem. Hoskinson is adamant that if the Cardano Foundation cannot take on this role, they should at least avoid hindering the community’s efforts to establish such a structure.
“This is not just about the budget. This is also about Cardano needing a foundation like many other ecosystems. If they don’t want to do that, then at least don’t prevent Intersect and the budget for the community to build a platform for themselves,” Hoskinson concluded.
