On October 12, Cardano founder and chief executive officer of Input Output Hong Kong (IOHK) shared some major announcement on the future of Cardano Foundation. In a live stream video on YouTube and an open letter sent to the Cardano community, Hoskinson has announced that he and Emurgo will be breaking away with the Cardano Foundation. According to Hoskinson, he has been having challenges working with the Foundation, being a central body, it is, trying to propel decentralized technology.
The failure for the Foundation to deliver on the stated promises and the complaint from the Cardano community over the Foundation not doing its job has led to the fall out between the parties. These issues will see Emurgo and Charles Hoskinson breakaway with the Cardano Foundation and its chairman, Michael Parsons.
“Traditionally, when a cryptocurrency is launched, there is a central foundation. And that foundation is responsible for issuing a token, for community management, exchange listing, the construction of the cryptocurrency and business development, as well as encouraging people to build on top of the protocol. The problem with this approach is that there is just simply too much power and responsibility in one entity, and there is a natural, organizational resistance towards decentralization.”
In the video, Hoskinson points out how the foundation has failed to deliver on its core responsibilities and duties. Particularly where Michael Parsons promised to build a board having been voted the Foundation’s ambassador. Until now, the Foundation has only got two board members, including Michael Parsons himself.
What Next For The Foundation?
The founder continued to state that he and Emurgo will be assuming all Cardano Foundation responsibilities. Currently, Input Output Hong Kong (IOHK) is signed on a three-year deal that sees the organization overlook peer review processes and third-party code reviews. Emurgo, on the other hand, manages the venture capital and business development side of the project.
According to Hoskinson, moving forward rolling out new projects, developments, and Cardano’s roadmap reconfiguration will improve. He continued to ensure the community that the new change will not affect the project or any of its goals.
He also says that the project is firmer than ever and the future looks bright. Given that the project is not controlled by IOHK and Emurgo’s funds, the new change is not expected to bring any changes, if anything operations will be more streamlined in the future.