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Charles Hoskinson, founder of Cardano and CEO of IOHK, delivered a forceful critique of the Cardano Foundation (CF) during his latest AMA, marking one of his most direct public confrontations with the organization. The discussion centered on the ongoing Midnight redemption controversy, the distribution of NIGHT tokens, and Hoskinson’s broader plans for multi-chain partnerships and Cardano’s expansion in Asia.
Midnight Token Controversy
Hoskinson explained the decision to prevent the Cardano Foundation from claiming NIGHT tokens as a necessary measure to protect network integrity. “We built it. It’s my money. We can do whatever we want,” he said, noting that the distribution included safeguards to prevent “undue burden and harm” to the network.
He suggested that allowing the CF to redeem tokens could create an adversarial governance bloc. “They’d come in and instantly be adversarial and assert that they have some sort of governance control. Let somebody else have that NIGHT who’s going to do more with it,” Hoskinson said.
The Cardano founder did not hold back in his criticism. He noted that much of the resources previously allocated to the CF were squandered, stating, “At what point does the community tell the CF to step aside? The free resources they already mismanaged.”
A Strong Contrast: Midnight Foundation
While criticizing the CF, Hoskinson highlighted the Midnight Foundation’s proactive approach. He emphasized that the organization is aggressively commercial, with over 110 deals in the pipeline and a dedicated account management team working across ecosystems. Hoskinson positioned the Midnight Foundation as embodying the vision he originally had for the CF, noting its capacity to efficiently deploy capital and push forward multi-chain initiatives.
Hoskinson also pointed to Intersect, Cardano’s members-based body, as a success story in community governance. “You already have a members-based organization. It took two years to build. Now just add additional resources and give them time to execute,” he said, framing Intersect as a model for future Cardano development.
Strategic Partnerships and Integrations
Hoskinson underlined the ongoing strategic expansion of Cardano through partnerships and exchange integrations. He mentioned the recently announced collaboration with Copper, which allows any exchange using Copper as a custodian to support both Midnight and Cardano-native assets. Additional partnerships include Bitcoin.com, Blockchain.com, and Brave.
He also revealed that IOHK is working closely with Chainlink on a first-ever UTXO deployment, a move aimed at advancing Cardano’s technical capabilities. “We sat down with Sergey Nazarov. They were skeptical about the engineering cost, but we believe it can be done,” Hoskinson said.
Governance and Resourcing Critique
The Cardano founder delivered a sweeping critique of the CF’s governance and resource management. He claimed that the Foundation has failed to meaningfully deploy capital and pointed out its absence from major blockchain events. “When I was at Salt, who wasn’t there? The CF. When we were at Rare Evo, there was no CF booth,” Hoskinson said, illustrating a perceived lack of engagement.
He also suggested that the CF’s actions have contributed to reputational challenges. “Members of the organization have subtly accused us of misappropriating funds. There were no apologies or attempts at reconciliation,” he noted.
Audit Report and Transparency
Hoskinson reassured the community that an audit report examining the CF’s history and financial management is near completion. The audit, covering activities from 2015 to 2025, will include original contracts, fund allocation, ADA sales, and vouching processes. He described the forthcoming report as “very damning for the CF’s recusal from its responsibilities” but said it would exonerate IOHK and provide full transparency.
“The purpose is sunlight. You put it all out there. The conclusions will be very positive and favorable to Input Output,” he said, underscoring a commitment to accountability and clear communication.
Cardano’s Future Outlook
Hoskinson emphasized that the Midnight rollout will benefit Cardano and its community rather than detract from it. With aggressive token distribution strategies, strategic partnerships, and innovative technical deployments, he is positioning Cardano to expand its ecosystem and cement its relevance in the broader blockchain space.
As of press time, ADA traded at $0.8795, reflecting the market’s continued interest in Cardano projects and the broader adoption of blockchain-based initiatives.
Conclusion
Charles Hoskinson’s recent AMA highlights the stark contrast between the Cardano Foundation and the Midnight Foundation. While the CF has faced criticism for mismanagement and limited engagement, the Midnight Foundation is depicted as a highly active, commercially driven organization ready to execute large-scale partnerships and technical advancements. Through transparency, strategic alliances, and community-focused governance, Hoskinson aims to guide Cardano into a new phase of growth and innovation.
