Charles Hoskinson, the founder of Cardano, has urged the Cardano Foundation to move its operations to a jurisdiction that allows users to vote for board members. He recommended a move to either Abu Dhabi or Wyoming.
The Cardano Foundation was founded in 2016 and operates under Swiss legislation, which does not allow for community-based board elections. Despite efforts to increase openness through open forums, there are persistent requests to restructure its leadership.
According to Charles Hoskinson, locations such as Abu Dhabi or Wyoming would provide more opportunities for the community to participate in governance, leadership, budget allocation, and profound insights.
Both locations are also known for providing blockchain-friendly environments.
Cardano Foundation’s concerns
Charles Hoskinson’s remarks are in response to a post by the Cardano Foundation that addressed governance concerns. The Foundation pledged transparency and declared open discussions, commencing with a virtual forum featuring CEO Frederik Gregaard.
In the post, the Foundation highlighted its dedication to transparency by emphasizing its initiatives to support its annual activity report. The report would include the publication of financial insights reports and on-chain audited statements.
Transparency, clarity, and dialogue are important to us. Over the past few years, we have put considerable effort into improving this, with the latest improvements being the launch of our financial insights report, along with our on-chain audited financial statements to…
— Cardano Foundation (@Cardano_CF) December 17, 2024
Cardano Foundation explained, “The foundation model is the legal form that was chosen in 2016 when the Cardano Foundation was set up. If the goal was to create a membership-based model, the legal form of a Swiss association, such as we used for PRAGMA, would have been a more suitable choice.”
However, Hoskinson believes that these measures are inadequate and is advocating for a new decentralized structure that is consistent with the principles of blockchain technology.
Cardano enthusiasts are also in search of a governance model that prioritizes inclusivity. One user stated that Swiss bylaws enforce stringent compliance and provide some protection, but they lack flexibility for broader community involvement.
Still, critics emphasize the obstacles to effective governance and impartial elections. This debate has acquired momentum, particularly in the wake of an anonymous whistleblower’s post regarding the Foundation.
Cardano plans to organize a series on X spaces following a recent X account hack
Currently, the Foundation intends to organize an X Spaces series in which its senior leadership will offer additional information regarding its operations. This comes after, on the Cardano Foundation X’s account was compromised on December 8.
Following the compromise of the X account, a fraudulent advertisement for a token called ADAsol was displayed to users of the social media platform.
This fraudulent advertisement boasted of a revolutionary bridge that was the result of a collaborative effort between the aforementioned entity and Solana.
Additionally, an X post was visible to users on the platform, indicating that ADA withdrawals had been halted as the U.S. SEC tightened its control over the crypto project.
However, it appears that this post has been removed. Overall, the X account breach saga attracted significant attention, emphasizing the importance of cyber security and its intricacies in the crypto industry.
Still, the assault resulted in significant market volatility for the project’s native coin, which is one of the most prominent cryptos by market cap.
Cardano (ADA) prices lately
ADA also joined the broader crypto market rally. In the past two weeks, the ADA price has been experiencing a decline of over 20%, from its peak of $1.22, attained in early December.
The price of Cardano has decreased by 5.4% in the past 24 hours due to the altcoin market’s collapse in preparation for the FOMC meeting.
Market analysts are optimistic about the potential of a rally for ADA, which currently has support at $1.02. According to Ali Martinez, a crypto analyst, ADA billionaires capitalized on the price increase from $1.15 to $1.33.
However, these whales have resumed purchasing, accumulating 160 million ADA since the plunge despite a decline to $0.91.
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