Cardano founder Charles Hoskinson has called on the Cardano Foundation (CF) to move its headquarters from Switzerland to a jurisdiction that allows users to elect board members. The move comes amid community concerns about the organization’s transparency and governance.
In a December 17 post on X, Hoskinson expressed concerns about the current governance structure of the Cardano Foundation, which operates under Swiss law as a non-profit organization and does not allow the community to elect board members. This, he said, contradicts the principles of decentralization that the Cardano community promotes.
‘Before they fabricate how the current board is appointed,’ Hoskinson wrote on X, ‘if Switzerland does not allow you to democratically elect the board, why not move the Foundation to a jurisdiction that does? The assets can be transferred to another organization.’
Charles Hoskinson
The Cardano Foundation's board currently consists of four members and four executives, including CEO Frederik Gregaard and Chair Jillian MacNab. According to Swiss law, the Foundation is not a member-based organization and 'does not expect to have the board elected by community members,' according to the Cardano Foundation's website.
Continuous criticism
Hours before Hoskinson posted on X, the Cardano Foundation issued a statement on December 17 in response to ongoing online criticism regarding its governance and management. Specifically, community members on X accused the Foundation of concealing information and questioned the current leadership's alignment with Cardano community values.
The fund emphasizes its commitment to transparency, clarity, and open dialogue.
‘In recent years, we have made significant efforts to improve this, with the latest improvements being the launch of financial reports and audited financial statements on-chain to complement our annual operational report,’ the statement read.
The impact of the jurisdiction
Hoskinson's comments highlight the impact of jurisdiction on the governance of decentralized blockchain organizations. Notable cryptocurrency organizations with foundations based in Switzerland include Ethereum, Tezos, and Polkadot (Web3 Foundation).
Although Switzerland, specifically the canton of Zug, has been known as the 'Crypto Valley' since Ethereum established its headquarters there, other jurisdictions have implemented more favorable regulations for the industry in recent years, including regulations for Decentralized Autonomous Organizations (DAOs).
‘Currently, there are doubts about the existing structure in Switzerland, which does not fully comply with the decentralization principles that cryptocurrency investors are looking for,’ said Alexandr Sharilov, CEO of CoinDataFlow. ‘This structure may limit direct participation from the concerned community, unable to make governance decisions.’
Some flexibility
However, Sharilov explained that under Swiss law, funds have the flexibility to design their own statutes, allowing for adaptive practices. Although there are limitations on community participation in governance, some of these limitations can be overcome.
After criticizing the current arrangement, Hoskinson suggested in a post on X that relocating the Foundation to areas like Abu Dhabi or Wyoming (USA) — known for their blockchain-friendly environments — could facilitate a governance model that promotes transparency and member participation.
The proposal to move to Wyoming or Abu Dhabi is based on their progressive legal framework for decentralized technology, said Gordon Hirsch, founder and managing attorney at Hirsch Law Group.
Hirsch explained that Wyoming has introduced laws supporting DAOs, allowing governance models such as boards to be elected by the community. He also noted that the Abu Dhabi Global Market (ADGM) provides a legal framework aligned with Hoskinson's vision for Cardano governance.
The Foundation has also announced the launch of a series of articles introducing its leadership members and experts on various topics. This initiative aims to provide a regular platform for open discussions.
https://tapchibitcoin.io/hoskinson-de-xuat-di-doi-quy-cardano-sau-phan-ung-du-doi-tu-cong-dong.html
