Most crypto projects have a foundation behind them. Cardano is no different – Cardano Foundation is run by Michael Parsons but he seems to have run into some trouble.
In an open letter, Charles Hoskinson, founder of Input-Output Hong Kong (IOHK), and Ken Kodama, CEO of Emurgo, called for the Foundation to “voluntarily subject itself to the Swiss authorities” and demanded that its chairman, Michael Parsons, resign.
Notably, the nonprofit Cardano Foundation is one of the three independent bodies which have responsibility for the development and programming of the Cardano Ecosystem. The other two are IOHK and Emurgo. In the same open letter, Hoskinson and Kodama outlined plans to expand the scope of their organizations to fill in the gaps in order to fill the Foundation’s role.
IOHK signed a contract three years ago to work on the Cardano project. As such, their goal 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.
Hoskinson mentions lack of transparency in governing the funds of the Foundation, no set KPIs to measure its performance – his frustration with Foundation is obvious. “Kodama accused the foundation of Material misrepresentations and wrongful statements… including a claim that it owned the trademark in Cardano.”
IOHK recently aired his grievances about the Cardano Foundation in a live stream on YouTube. The issues have caused him and Amerigo to break away from the Cardano Foundation and its chairman, Michael Parsons.
In the video, Hoskinson points out that the Cardano community came forward to say that the Cardano Foundation was simply not doing its job. According to Hoskinson, the board has not executed “on its core responsibilities and duties.”
In addition to demanding that the chairman step down and submit the Foundation to Swiss Law, the authors of the open letter included a more radical proposal: stepping in. Because of the alleged failures of the Cardano Foundation to do its job, Hoskinson and Kodama said, their companies “are committed” to taking over its role.
However, the deadline is not too strict – they plan to make a full takeover until 2020 and change the Foundation with an automated “decentralized Foundation” built as DAO.
This fallout is significant because of Charles Hoskinson’s reputation around the crypto ecosystem. There has been no response from the Foundation as of yet, but it is probably in the works – this was too big of an attack to let it slide unanswered.