Charles Hoskinson, founder of Cardano and CEO of IOHK, delivered a scathing critique of the Cardano Foundation (CF) during his latest AMA, marking one of his most direct public confrontations with the organization. The discussion focused on the ongoing controversy surrounding the Midnight redemption, the distribution of NIGHT tokens, and Hoskinson’s broader plans for multi-chain partnerships and Cardano’s expansion in Asia.

Controversy over Midnight tokens

Hoskinson explained that the decision to prevent the Cardano Foundation from claiming the NIGHT tokens was a necessary measure to protect the integrity of the network. “We built it. It’s my money. We can do whatever we want with it,” he said, clarifying that the distribution included safeguards to avoid placing an “excessive burden or harm” on the network.

He suggested that allowing the CF to redeem tokens could create an antagonistic governance bloc. “They would come in and be instantly adversarial, claiming they had some control over governance. Let someone else get that NIGHT who will do more with it,” he added.

Hoskinson did not hold back his criticism, stressing that many resources previously allocated to the CF had been wasted: “At what point does the community tell the CF to step aside? They’ve already mismanaged the free resources they had.”

A sharp contrast: the Midnight Foundation

While criticizing the CF, Hoskinson highlighted the proactive approach of the Midnight Foundation. He emphasized that the organization is aggressively commercial, with more than 110 agreements underway and a dedicated management team working across ecosystems. Hoskinson presented the Midnight Foundation as embodying the vision he originally had for the CF, capable of efficiently deploying capital and promoting multi-chain initiatives.

He also mentioned Intersect, Cardano’s member-based body, as a successful example of community governance. “You already have a member-based organization. It took two years to build it. Just add additional resources and give them the time to execute,” he said.

Strategic Partnerships and Integrations

Hoskinson highlighted Cardano’s strategic expansion through partnerships and integrations with exchanges. He mentioned the recent collaboration with Copper, enabling any exchange using Copper as a custodian to support both Midnight and Cardano’s native assets. Other partnerships include Bitcoin.com, Blockchain.com, and Brave.

He also revealed that IOHK is working closely with Chainlink on a groundbreaking UTXO deployment aimed at enhancing Cardano’s technical capabilities. “We met with Sergey Nazarov. They were skeptical about the engineering cost, but we believe it’s achievable,” he said.

Review of governance and resources

The founder of Cardano sharply criticized the governance and resource management of the CF. He stated that the Foundation had not deployed its capital meaningfully and highlighted its absence at major blockchain events. “When I was at Salt, who wasn’t there? The CF. At Rare Evo, there was no CF booth,” he illustrated.

He also suggested that the CF’s actions contributed to reputational challenges. “Some members of the organization subtly accused us of embezzlement. There were neither apologies nor attempts at reconciliation,” he noted.

Audit Report and Transparency

Hoskinson reassured the community that an audit report examining the history and financial management of the CF is nearly complete. The audit, covering activities from 2015 to 2025, will include the original contracts, fund allocation, ADA sales, and validation processes. He described the upcoming report as “very damning for the CF and its shirking of responsibilities,” while asserting that it will exonerate IOHK and provide full transparency.

Future prospects for Cardano

Hoskinson emphasized that the deployment of Midnight will benefit Cardano and its community rather than harm it. With aggressive token distribution strategies, strategic partnerships, and innovative technical deployments, he is positioning Cardano to expand its ecosystem and strengthen its relevance in the blockchain space.

Conclusion

Charles Hoskinson’s recent AMA highlights the striking contrast between the Cardano Foundation and the Midnight Foundation. While the CF has been criticized for poor management and limited engagement, the Midnight Foundation is presented as a highly active, commercially driven organization ready to execute large-scale partnerships and technical advancements. Through transparency, strategic alliances, and community governance, Hoskinson aims to guide Cardano toward a new phase of growth and innovation.