Cardano Foundation clarifies role and priorities amid ongoing ecosystem governance disputes

Cardano Foundation addresses tension with Hoskinson and promises support for the network's ecosystem goals.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

The Cardano Foundation has addressed the mounting concerns and criticism over its role within the blockchain network’s ecosystem.

Over the past weeks, the Foundation has faced increased criticism for alleged internal conflicts and claims of sidelining key contributors, including Cardano’s founder, Charles Hoskinson.

Concerns also emerged regarding its role in Catalyst Fund 13, where it participated as a Delegated Representative (DRep) with 180 million ADA tokens.

However, the Foundation clarified its stance by publishing an official blog post and a detailed FAQ on the Cardano forum on Dec. 16.

Cardano Foundation and Project Catalyst

The Foundation reaffirmed its active participation in Project Catalyst since 2021, emphasizing its commitment to advancing decentralization, governance, and sustainability across the network.

For Funds 12 and 13, the Foundation explained that its voting decisions focused on supporting projects that align with these priorities. It stated:

“With our vote, we wanted to double down on the topics of long-term sustainability, decentralization and governance for Cardano. These principles are exemplified by the projects we chose to support.”

Highlighting voter participation challenges, the Foundation pointed to the low engagement levels in Catalyst. Out of 35 billion ADA in circulation, only 4.8 billion ADA were registered to vote, with many participants not actively voting on all proposals. The Foundation’s 180 million ADA stake represents about 3.75% of registered voting power but only 0.5% of the total circulating supply.

The Foundation committed to improving transparency for future rounds, promising more precise criteria for its voting process and ADA allocations. It encouraged other large stakeholders to adopt similar practices to ensure balanced decision-making.

Additionally, the Foundation plans to publish a technical blog explaining its voting process using community tools.

Addressing the relationship with Hoskinson and Cardano Constitution

The Foundation also responded to concerns regarding its alignment with Input Output Global (IOG) and its stance on the Cardano Constitution.

While acknowledging IOG’s contributions under Hoskinson’s leadership, the Foundation emphasized its unwavering support for the Constitution and broader ecosystem goals. It wrote:

“[IOG and Hoskinson’s] work and vision for Cardano is the very reason many of us are in this space. We are sometimes frustrated by their actions and choices. But given the complexity of making Cardano a long-term success, it is to be expected that we will disagree on how this could be accomplished.”

This response comes as Hoskinson recently questioned the Foundation’s alignment with Cardano’s vision. The blockchain network founder had also raised concerns about the Foundation’s activities, including approval of the network’s budget.

However, the Foundation clarified that any budget endorsement would be contingent on its alignment with Cardano’s long-term objectives and specific content.

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