A known person in crypto industry, Cardano founder Charles Hoskinson has proposed a fundamental change to the platform’s governance structure. He wants to transform the Cardano Foundation into a membership-based organization (MBO). This shift aims to give the community more control over decision-making processes.
The Case for Change
On December 28, Hoskinson addressed ongoing concerns about the foundation’s current structure. The existing non-membership model has created barriers to community involvement. This has led to growing tensions within the Cardano ecosystem.
Current Challenges
The present system faces several key issues. Community members lack direct input in governance decisions. The Swiss government appoints board members without community consultation. This arrangement has limited the ecosystem’s growth potential.
The MBO Solution
Hoskinson believes a membership-based structure would solve multiple problems. It would improve oversight of financial transactions. Community members could elect their representatives. The system would create better coordination for development contracts.
Community Initiatives at Stake
The proposal highlights Intersect, a community-led project currently facing challenges. Despite its potential, Intersect struggles with funding and relies heavily on volunteers. Instead of supporting this initiative, the foundation launched Pragma, a competing entity. This decision has drawn criticism from Hoskinson.
Resource Allocation Concerns
Hoskinson questions the foundation’s management practices. He argues that resources should support existing community projects. The creation of competing organizations has divided available resources. This approach has hindered rather than helped ecosystem growth.
Ongoing Disagreements
Several issues remain unresolved between Hoskinson and the foundation. These include:
- Budget allocation decisions
- The proposed Cardano constitution
- Community project support
- Governance structure reforms
The Path Forward
Hoskinson presents two clear options for the foundation. They can either adopt the MBO model or step aside. This would allow community-driven efforts like Intersect to develop independently. The foundation’s response could shape Cardano’s future development.
Broader Implications
This governance debate reflects larger trends in blockchain development. Communities increasingly demand more control over their platforms. Traditional governance structures face pressure to evolve. Cardano’s resolution of this issue could influence other blockchain projects.
Looking Ahead
The push for reform marks a critical moment for Cardano. The outcome will affect its competitive position in the blockchain space. It will also set precedents for community governance in digital assets.
