Emily Walker
During a recent livestream held on December 21, titled “Partnerships,” Charles Hoskinson, the founder of Cardano, provided clarity on the dynamics between Input Output (IO) and the Cardano Foundation (CF). He also shared insights regarding the broader ecosystem’s future. The session, lasting nearly 40 minutes, included answers to community member Rick McCracken’s queries, discussing subjects from on-chain governance to possible collaborations with platforms like Polkadot and Hedera Hashgraph.
Hoskinson Critiques the Cardano Foundation
The discussion evolved from McCracken’s post on X, which raised concerns about how internal disagreements between IO and CF could impact external partnerships. He questioned the ability of Charles, Tam, and Fred to foster healthy relations within the Cardano ecosystem, casting doubt on their potential effectiveness with external organizations.
In his response, Hoskinson expressed his frustration regarding what he terms a significant “philosophical and fundamental difference” between the two organizations. He pointed out that their disputes mainly focus on the governance structure of the foundation and its management of community funds, insisting they should be influenced by the community instead of a closed board.
“For three years, we’ve faced conflicts due to a fundamental divergence between the Cardano Foundation and Input Output,” Hoskinson remarked. “Some disputes are essential because they protect our ecosystem’s financial reserve, governed by individuals who aren’t accountable to the broader community.”
A key issue for Hoskinson is the Cardano Foundation’s oversight of approximately $600 million in ecosystem funds. He argued that these resources represent “the community’s money” and must be managed with high levels of transparency and accountability.
“That’s $600 million of money from everyone involved,” Hoskinson highlighted. “This is the underlying philosophical debate, and behind the scenes for three years, we’ve been trying to reach an understanding.”
He emphasized that disagreements over governance issues are not trivial but rather essential to maintaining Cardano’s decentralized nature and future, especially as the platform looks toward on-chain governance advancements through CIP-1694 and preparations for significant developments in 2025.
Future Collaborations for Cardano
While addressing internal governance issues, Hoskinson maintained that external partnerships are thriving. He mentioned active discussions with various blockchain ecosystems, including Polkadot, Hedera Hashgraph, and Elrond (now MultiversX), along with talks with major tech companies like Microsoft Azure. “We have never had better opportunities to form collaborations as an ecosystem, primarily due to our impressive technology,” he stated. “What initiatives are we undertaking with Polkadot, Elrond, and Hedera Hashgraph? We have some exciting announcements ahead.”
Regarding Microsoft Azure, Hoskinson disclosed: “[I’m] also engaging with all the significant players, especially the big tech companies. I recently had a meeting with Microsoft Azure, given their involvement in the Confidential Computing Consortium. This integration with large infrastructures is a great approach for Midnight.”
He noted that Midnight, an upcoming protocol on Cardano focused on privacy and data protection, has already lined up “95 partnerships.”
Throughout the livestream, Hoskinson emphasized the critical role of on-chain governance as a lasting solution for resolving disputes and guiding Cardano’s future. He praised community-driven initiatives like Intersect and Pragma, which aim to enhance coordination among developers, builders, and stakeholders.
“Your responsibility as a member of the Constitutional Committee—and that of all Cardano community members involved in governance—is to enhance the visibility of on-chain governance mechanisms,” he pointed out, encouraging community members to “advocate for engagement” and adopt productive behaviors.
Despite acknowledging existing tensions, Hoskinson remains hopeful about Cardano’s outlook. He pointed to growth in the ecosystem’s DeFi and NFT sectors, highlighting teams such as Midgard and Gummy Worm on Layer 2, along with an increase in memecoins within Cardano.
“Our DeFi ecosystem is thriving,” Hoskinson remarked, listing multiple initiatives. “Every month, they see growth in community engagement and total value locked, continuously releasing new projects. They are adapting to build effectively on Cardano.”
As of the latest update, ADA was trading at $0.90.