Internal Zoff at Cardano: Charles Hoskinson demands resignation

In a letter published yesterday, Charles Hoskinson (IOHK) and Ken Kodama (CEO of Emurgo) call on the Cardano Foundation to voluntarily submit to the Swiss authorities and demand the resignation of the current Foundation President Michael Parsons. In the letter Hoskinson and Kodama write of “great frustration” due to inactivity and perceived shortcomings in the work of the Cardano Foundation. In return, IOHK and Emurgo offer to take over the tasks of the foundation until 2020.

The Cardano Project currently consists of three independent institutions: IOHK, Emurgo and the Cardano Foundation, all of which take on different tasks for the project. While the IOHK around Charles Hoskinson has the main task to develop the Cardano protocol technically, from research to implementation, as well as the peer review process, Emurgo has the task to take care of venture capital, partnerships and business development. The Cardano Foundation was established to take over administrative tasks. Among other things, the Cardano Foundation was entrusted with the procurement of trademark rights. The Foundation should also be active in the field of regulatory public relations, lobbying and public relations.

In the letter published yesterday, Hoskinson and Kodama now express their “great frustration” at the Cardano Foundation’s inaction and perceived shortcomings. In a video published on Youtube, Hoskinson also clearly states that the Executive Board “has not fulfilled its core tasks and obligations”. In total, both accuse the Cardano Foundation of 8 misdemeanors in the letter:

  • A lack of strategic vision
  • The lack of a clear public plan on how the Foundation will use its resources for the benefit of the community.
  • The lack of a clear public plan on how the Foundation will use its resources for the benefit of the community.
  • Missing transparency in the Foundation’s activities
  • Substantial misrepresentations and false statements by the Board of Trustees, including the allegation that it owns the Cardano brand.
  • Lack of financial transparency
  • The absence of a complete and diverse Board of Trustees
  • A missing concept of how the millions of dollars that will be donated to the Foundation will benefit the Cardano community.
  • Missing use of an internal governance system at the Cardano Foundation.
  • In addition to the demand that the current Cardano Foundation President, Michael Parsons, resigns and submits the Foundation to Swiss law, Hoskinson and Kodama also demand that IOHK and Emurgo take over the role of the Foundation. Both companies intend to commit themselves by 2020 to take over the functions previously reserved for the Cardano Foundation. In particular, IOHK and Emurgo intend to take on the following tasks:

  • Hiring dedicated community managers to improve community growth and information through meetup groups, events, and other educational activities.
  • The Cardano Foundation will employ, subject to negotiation, staff directly involved in community management.
  • IOHK will work with Emurgo to make efforts in Japan to improve access to crypto currency exchanges and the community’s understanding of Cardano.
  • Intensification of educational and marketing efforts
  • Setting an Open Source Community Manager to handle the Cardano improvement suggestions
  • expanding the research area to take over the areas originally intended for the Cardano Foundation
  • Start of a research agenda to design a decentralised foundation to be established as a DAO (“decentralised Foundation built as a DAO”)
  • The Foundation has not yet responded to the letter. However, it can be assumed that this will not remain unanswered. We are looking forward to the answer and will report if there are any news about the internal dispute at Cardano.

    The video published after the letter by Charles Hoskinson, where he talks about further background information on the current situation, can be seen in the following: