Charles Hoskinson criticized the direction of the Cardano Foundation

Charles Hoskinson, the founder of Cardano, raised concerns about the governance model of the Cardano Foundation.

He pointed out that the structure, which is not based on membership, weakens the control of the society and has created a constant conflict between him and the organization.

Hoskinson revealed a key issue with the Cardano Foundation

On December 28, Hoskinson criticized The Cardano Foundation argues that the current framework is not sufficiently inclusive of the community..

He therefore proposed a move to a membership-based organization (MBO), which would give consumers more influence over management decisions. Hoskinson believes this change could address key challenges in the ecosystem, including better support for developers, improved liquidity, and more robust exchange listings.

“The organization should be MBO. It solves the practical issues that people have been complaining about for years, like who does the social coordination work, who is the advocate for the construction, who helps with liquidity and details, as well as being part of monitoring and enforcing payments. for development contracts,” Hoskinson said.

Earlier this month, Hoskinson called for the Cardano Foundation to move to a mandate that would allow community members to elect its board. The Swiss government has criticized the current governance model, which gives it the power to appoint board members, effectively eliminating the Cardano community.

These comments are consistent with the foundation's frustration with asset management. He noted that the foundation's alternative, the community-led Intersect, is promising, but lacks adequate funding and manpower.

“Intersect is currently a $600 million luxury and necessity option with years of downtime. As such, it carries heavy burdens and high expectations with limited funding and a largely volunteer workforce,” Cardano's founder wrote.

Hoskinson criticized the foundation's decision to set up another entity, Pragma, instead of investing in community initiatives like Intersect. He stressed that instead of creating competing structures, the primary role of the foundation should be to strengthen community-led efforts.

This conflict is the latest in a series of disputes between Hoskinson and the foundation. Previous disagreements have included budget allocation debates and differing views on the recently introduced Cardano Constitution. The foundation expressed interest in supporting the new constitution, but cautioned against budget approval, citing the need for further review.

In his view, adopting the MBO management model is critical to enhancing community control and ensuring the ecosystem's long-term success. Hoskinson insists that if the Cardano Foundation cannot fulfill this role, it should at least avoid hindering community-led efforts to establish such a structure.

“This is not just about the budget. That's because Cardano, like many other ecosystems, needs a foundation. If you don't want to do that, at least don't budget for Intersect Road and the community to build itself,” Hoskinson said.