Charles Hoskinson Urges Cardano Foundation to Embrace Community-Driven Governance

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As a seasoned researcher with years of experience observing and analyzing the blockchain industry, I find myself deeply sympathetic to Charles Hoskinson’s concerns about the Cardano Foundation’s governance model. Having witnessed numerous projects falter due to lack of community involvement, it is refreshing to see a founder advocating for a more inclusive approach.

Hoskinson’s proposal for transitioning to a membership-based organization (MBO) strikes me as a pragmatic solution to address the challenges within the Cardano ecosystem. The potential benefits he envisions—better developer advocacy, improved liquidity, and robust exchange listings—are indeed compelling.

However, I also understand his frustration over the current governance model, which seems to marginalize the very community it was intended to serve. The call for relocation to a jurisdiction that allows community members to elect its board is a valid one, as is his criticism of the foundation’s resource management and decision-making process.

The creation of Pragma instead of investing in existing community initiatives like Intersect appears to be a missed opportunity. I believe that foundations should empower community-led efforts rather than creating competing structures.

In light of these issues, I wholeheartedly support Hoskinson’s call for the Cardano Foundation to adopt an MBO governance model. If it cannot fulfill this role effectively, it should at least avoid hindering community-driven efforts to establish such a structure.

On a lighter note, perhaps the Cardano Foundation could learn from the famous quote: “The secret of getting ahead is getting started.” In this case, getting started on embracing a more inclusive governance model could be the key to getting ahead for Cardano. After all, in the fast-paced world of blockchain, standing still is moving backwards!

Charles Hoskinson, creator of Cardano, has expressed apprehensions regarding the management structure of the Cardano Organization.

He emphasized that because it lacks a membership system, its governance can’t be effectively monitored by the community, leading to recurring conflicts between him and the organization.

Hoskinson Reveals Key Issue With the Cardano Foundation

On December 28th, Hoskinson voiced his concerns about the Cardano Foundation’s existing structure, stating that it lacks sufficient community engagement.

Instead of his suggestion, let’s consider transforming into a user-centric organization (UCO), where members have increased control over decision-making processes. Hoskinson envisions this change could address critical issues within the ecosystem, such as stronger representation for developers, enhanced liquidity, and more solid exchange listings.

In simpler terms, Hoskinson suggested that the organization should function as a Management by Objectives (MBO) system. Such a setup would address longstanding issues, such as who takes care of social coordination, advocates for builders, manages liquidity and listings, and oversees payment processes, among other practical concerns like serving as a binding entity for development contracts.

Recently, Hoskinson advocated for the Cardano Foundation to move to a place where the community can elect its board of directors. He expressed concerns about the existing governance structure, as it gives the Swiss government the power to select board members, thereby diminishing the role and influence of the Cardano community.

His comments echo his wider discontent with the way the foundation handles resource allocation. He proposes that although Intersect, an initiative driven by the community, seems promising, it currently faces insufficient financial backing and manpower.

As a crypto investor, I find myself in a position where Intersect is now indispensable, yet without the financial luxury of $600 million and the added time that comes with it. This reality places an immense burden upon it, along with high expectations, all while operating with limited funding and largely volunteer labor. This is what the Cardano founder penned down.

Cardano’s co-founder, Hoskinson, voiced his disapproval towards the foundation setting up Pragma, an additional entity, instead of supporting existing community projects like Intersect. He strongly believed that the foundation’s main mission should be to strengthen community-driven initiatives rather than creating rival systems.

The ongoing friction is just the most recent instance of disagreements between Hoskinson and the organization, with previous conflicts revolving around budget allocation discussions and contrasting opinions on the recently implemented Cardano charter. Although the organization has shown readiness to endorse the new charter, it has displayed cautiousness when it comes to approving budgets, stating that a thorough review is needed first.

According to Hoskinson, it’s essential for the MBO governance model to be implemented as it promotes community control and secures the ecosystem’s lasting success. He strongly believes that if the Cardano Foundation fails to take on this role, it should at least not obstruct the community’s endeavors in setting up such a system.

Hoskinson pointed out that this isn’t just about setting a budget; it’s crucial for Cardano to establish a foundation similar to other ecosystems. If they choose not to create one, they should at least avoid hindering Intersect and the community’s efforts to build their own foundation,” he concluded.

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2024-12-29 01:10