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. The vision of the two most important influencers of the project is not identical.
Charles Hoskinson says,
“Cardano foundation is centralized and simply not doing its job.”
In the video and open letter realized by IOHK, Hoskinson points out his grievances about the Cardano Foundation. In the video, he also mentions issues IOHK and Emurgo are facing with the foundation. 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.
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.”
Some believe that a civil war is about to break out in the Cardano foundation while many in the community believe that its all for the betterment of the project and its future. While this will definitely affect the roadmap execution and the price of the token but we here believe that the long-term effect of this will be positive.
Here, is the detailed analysis of the future of the project.