Charles Hoskinson Advocates for Membership-Based Governance in Cardano
Charles Hoskinson, founder of Cardano, criticized the governance structure of the Cardano Foundation for lacking community involvement. He advocates for a transition to a membership-based organization (MBO) to enhance participation and address ongoing issues within the ecosystem.
Hoskinson's primary concern is the foundation's non-membership governance model, which he argues diminishes community oversight and has led to tensions that impede blockchain growth. On December 28, he suggested that an MBO would empower users in decision-making and resolve issues related to social coordination, developer advocacy, liquidity, and exchange listings.
He believes adopting an MBO would improve payment oversight and establish a unified entity for development contracts. “The organization should be an MBO. It would solve so many issues people have been complaining about for years,” Hoskinson stated. He also called for the foundation to relocate to a jurisdiction allowing community members to elect its board, as the current Swiss government appointment process excludes Cardano stakeholders.
Hoskinson’s concerns extend to resource management, highlighting Intersect, a community-led initiative, as a viable alternative but noting its limited funding and reliance on volunteers. In contrast, the foundation possesses substantial resources yet fails to meet community expectations.
Furthermore, he criticized the foundation for establishing Pragma instead of supporting Intersect or other community initiatives. He emphasized that the foundation should focus on empowering existing projects rather than creating competing entities.
This conflict is part of broader disagreements over budget allocation and differing views on the proposed Cardano constitution. While the foundation supports the constitution, it has delayed budget approvals, citing the need for thorough reviews.
Hoskinson asserts that an MBO is vital for the ecosystem's long-term success. He concluded that if the foundation cannot adopt this model, it should not obstruct community-driven efforts to establish one. “If they don’t want to do that, then at least don’t get in the way of Intersect and the budget for the community to build one themselves,” he stated.