IOHK CEO Charles Hoskinson and Emurgo CEO Ken Kodama have published an open letter to the community informing them that they have broken ties with the Cardano Foundation.
Hong Kong blockchain company IOHK specializes in developing basic blockchain protocols for the Cardano project. At the same time, the Japanese company Emurgo is mainly engaged in concluding agreements and attracting other projects. Thus, both companies are key elements of the Cardano ecosystem.
The statement says that over the course of two years the Cardano Foundation has not made any visible progress. Moreover, the organization has not even established key performance indicators for itself.
Hoskinson and Kodama suggested that the Cardano Foundation President Michael Parsons resign so that the remaining two ecosystem participants, IOHK and Emurgo, could take the situation into their own hands. The organization was also invited to undergo a voluntary audit by the Swiss authorities.
Among other shortcomings of the Cardano Foundation are listed:
– lack of transparency and consistency in the decision-making process, as well as in the use of funds;
– unsettled communication channels and, in particular, lack of notifications about the current state of the project and future plans;
– an incomplete and poorly diversified board of directors, in which Parsons was, in fact, the only participant (the organization is not regulated and does not pass an audit, which runs counter to the norms of Swiss law);
– misleading and false statements of the organization.
“As leaders of IOHK and Emurgo, we are very upset that we were not able to activate and increase the efficiency of the Cardano Foundation. We also could not solve the above problems. In addition, we are very disappointed that the organization has repeatedly failed our community,” the statement said.
Hoskinson and Kodama promised to search for personnel who would perform the functions originally assigned to the Cardano Foundation. They also noted that the funding attracted by the project remains at the disposal of their companies and does not depend on the Foundation.
The head of IOHK also recorded a video with a corresponding appeal to the community. The Cardano Foundation has not yet commented on the situation.