Separation of powers – Cardano Foundation wants to preserve its independence
The separation of powers in the Cardano ecosystem is wanted and should be maintained.
The ecosystem of the Cardano ( ADA ) crypto project has a complex organizational structure that is not entirely dissimilar to the way American or German democracy works
According to the principle of the separation of powers, there are several powers that share the management of the project and take on different tasks. The main three powers are the Cardano Foundation, EMURGO and IOHK. Frederik Gregaard, the newly appointed managing director of the Cardano Foundation, is certain that this division will become even more complex in the future as more and more organizations join the ecosystem. At the same time, he emphasizes that the Cardano Foundation must remain independent of IOHK managing director Charles Hoskinson. Hoskinson is considered the founder of the entire crypto project and also designed its organizational structure:
“The Swiss foundation law stipulates that we have to be independent. And that’s exactly why Charles designed the organization this way, because he truly believes that those who will protect the Cardano blockchain for generations to come are truly independent. “
The aim of the Cardano Foundation is the further development of the Cardano blockchain protocol. To this end, she works with a development team that is currently IOHK. The contract between the foundation and IOHK expires this year, but in a few months the so-called „Voltaire era“ will be initiated on the network, which will also be accompanied by a vote on the extension of the cooperation between the two organizations. It is unlikely that IOHK will not win the contract again, but should that happen another team would take that place.
In 2018 there were indeed differences between the Foundation and IOHK , but the two sides have come closer since then. IOHK is an independent company that also works on other projects, but primarily focuses on Cardano. The company recently made suggestions for improving the Ethereum Classic blockchain. EMURGO, the third power in the league, was initially the funding organization or the investment company of the ecosystem, but the company is now set up as a broad technology company.
Nonetheless, Gregaard admits that Hoskinson is more than just the head of the development team working on Cardano, and that there may be differences of opinion between the two about the further direction of the blockchain network in the future:
“Charles started the project together with one of his colleagues. So there is no question that he is brilliant and visionary. But at the same time he is also the head of a service provider who has to provide a service. […] I’m sure that there will be arguments about where the priorities are, that sometimes, together with the community, we want a little more to the right, while Charles prefers to go left, but in such cases we somehow have to each other agree. “
Since Gregaard has already worked with Hoskinson as PwC’s economic advisor for the past 6 to 12 months, he has a good feeling about the joint cooperation, even if it may not be easy. The new head of the foundation is also an advocate of a decentralized organizational structure, which, in his opinion, is a good alternative to the common centralized structure of technology companies such as Facebook and Google , which exploit their users rather than really let them participate.