An Open Letter to the Cardano Community from IOHK and Emurgo

iohk-blog

#1

This joint statement from Charles Hoskinson and Ken Kodama has just been published on the IOHK website.

This statement relates to some of the concerns brought up in the following two threads of this forum:

  1. I am concerned over friction between the Cardano Foundation and IOHK
  2. Special Announcement on the investigation of the Cardano Foundation

Summary of the open letters contents:

  • Description of IOHK/Emergo/Cardano Foundations intended roles and responsibilities
  • Lack of performance by the Cardano Foundation (8 bullet points)
  • Call of action - carry out a complete audit / persuade Mr Parsons to voluntarily step down
  • Offer of IOHK & Emurgo - describes additional roles that IOHK/Emurgo are committed to until 2020 (7 bullet points)

#2

Wow! This must have been a big decision for Charles and Ken.

What costs more transparency or inaction?

In the short term transparency always costs more.

In the long term inaction is frequently the biggest cost.


#3

I agree. The fact they took this big decision shows that they likely exhausted all other approaches to resolving the issues with CF. I support this transparent approach which I believe will turn out to be the right decision for the projects long term success.
Judging by the sentiment of this article and the contents of the CF email there have been deep conflicts between CF and IOHK for a while, making this public will put pressure on the Cardano Foundation.
Lets see how/if they react at all!


#4

Well I know who Charles Hoskins is, but I have no idea who Michael Parsons is. The Foundation should be doing everything possible to make sure IOHK has no blockers at executing their purpose to bring Cardano’s roadmap forward.


#5

Many thanks to Charles Hoskinson & Ken Kodama for their transparency and proactive steps to rectify the pathetic performance by the Foundation council/chairman. I wish we could vote the bums out NOW…we need community members in Switzerland to file a formal complaint with Swiss authorities ASAP!


#6

there’s always two sides to a story.

folks who work at cf have been strangely silent.

i’d be interested in hearing what @cf_bruce or @cf_jonmoss or @cf_maki.mukai have to say on this matter!


#7

I believed they already said it…


#8

They just work for the CF, you can’t expect them either to represent the upper echelons of the organisation or to speak out for themselves while they’re still employed there.


#9

Yes. I have seen nobody here have an ill will towards bruce jonmoss or maki or any other of the staff who do the day to day operations. For me they have been helpful kind and hard working.


#10

I completely Agree!


#11

I really want to hear from the management. I feel like we are turning into a mob (including myself) and becoming judge/executioner in one.

Granted we have some facts that point toward lack of interest at best, we still need a word from Mr. Parsons. Maybe he is drafting his open letter to the community. If he is honorable enough to resign, it would be the best thing at this moment as his reputation is completely shattered within this community—something you can’t recover from that easily.

I would like to thank and absolutely support @cf_maki.mukai @cf_tom.kelly, @cf_jonmoss and others for their relentless effort to make this community a better place.


#12

Agreed - although all the issues that have been brought up are very unsettling happy to hold of judgement until Mr. Parsons has made a reply.

Also want to add my support for @cf_maki.mukai @cf_tom.kelly and @cf_jonmoss who have been absolutely excellent right from the first Cardano meetup at the start of the year.


#13

How was it possible to hand over CF to this congregation of imbeciles? Michael Parsons, which strikes me as mediocre after seeing him live, and his son-in-law, even more mediocre… it all sounds like some ancient history tale. I’m amazed that – as far as I can tell – these clowns have so much power and autonomy when it comes to funds and all the rest of it. Is this not mind-boggling?


#14

The Cardano Foundation has a big chunk of Ada shares from the Genesis Block. What will happen to those Ada? On the interim, who has control/private keys of Cardano Foundation’s share and who authorizes (maybe multi-signature but technically multi-sig isn’t available yet) use of funds? I hope IOHK and Emurgo has some veto power over decisions if there’s blatant misuse of funds and vice-versa.


#15

A valid question

Maybe (hopefully) the Foundation can re-position itself and align with the decentralized vision of the community and by doing so move forward to use those Ada to strengthen the community ecosystem, the Ada seem to be legally tied to the Foundation so it really depends on the path that the Foundation goes down, I do not think IOHK or Emurgo have any type of veto power legally as they are 3 separate entities , the recent development’s do show that the CF is not a required pillar for the community and the funds they are in control of are not required now for future community growth, volunteers have worked alongside the CF on the growth of the community for over a year and have seen little if any financial support, and now IOHK and Emurgo have committed to work on the community ecosystem and as I follow as many social channels as I can I see that the same volunteers are still committed to the community first and will continue to be involved in its growth even with the short comings of the Parsons lead CF.
These decentralized pathways have always depended on a strong community since Satoshi started bitcoin and even if a company such as the CF falters it is the responsibility of the community to push forward to realize the dream that they are a part of.


#16

Well, to be honest I had a lot of respect for Mr. Parsons before the facts were out. He has long experience in the financial sector. Based on a few of his public appearances he seemed like an articulate and a knowledgeable person.

Nepotism is the last thing I expected from him. Perhaps his long expereince in financial industry exposed him to so much of it that it’s not an issue anymore. Although the thousands of regulations in the industry are designed to discourage that (i know that from the regular training we receive), perhaps in practice among the powerful nepotism is common practice, idk.

I used to wonder whether the Cardano Foundation is on a shoe-string budget beside the ADA allocation and therefore is waiting for increase in purchasing power of ADA before swinging into visible action. However, it turns out that it has funds beside the ADA allocation; sadly, there’s no transparency on how much that is and how it is being spent.

In the short term it appears that all resources allocated to the Cardano Foundation will become inaccessible to the community. In the long run, I hope the control is transferred to a DAO and future decisions are then made by consensus of stakeholders.


#17

Charles seemed to have a defeated attitude in the video. I got the feeling that Parsons basically cannot be held accountable and has effectively hijacked the foundation, being the sole person that can exercise power, decide on how the funds are spent etc. I must be mistaken? :face_with_raised_eyebrow:

And this thing with IOHK, Emurgo and we the community waiting on him to resign – what’s that all about? If something is amiss, if there is a sense of him having misappropriated funds then let there be a proper investigation – hell, initiate legal action. You don’t wait on the corrupt, you remove them as soon as you get word of their transgressions.


#18

If there would be legal proceedings going on in the background employees would probably be instructed to hold there tongues and not to provide answers regarding the community’s concerns…

You don’t wait on the corrupt, you remove them as soon as you get word of their transgressions.

Hard thing to do when the chairman has total control. Basically, he would have to vote for himself to resign, an unfortunate side effect of having a 2 member board, with one founder.


#19

I dont think its defeated, it’s when you see your trustworthy partner changed and turned against you. It’s frustrating, it’s giving up. But o well, I guess this kind thing does happen everyday in business, from owning a small coffee shop to a public corporation.

No matter how good we can design a system, you always see the human nature.


#20

I like that we’re moving for change. I personally like the idea of having the functions of a foundation separate to the for profit organisations. my preference would be for the financial structure of the organisation to be one that encourages delivery on the intention.

if this cant be achieved, then we will have to wait until the treasury model and voting for that are in place to re-establish it effectively.


Should we be voicing our opinion and be asking Michael Parsons to resign?