Cardano founder Charles Hoskinson has ignited a public debate within the Cardano ecosystem, challenging the spending efficiency of major entities like the Cardano Foundation and Emurgo. The controversy stems from a rejected proposal to allocate 14 million ADA (worth approximately $3.3 million) from the project's treasury to fund the annual Cardano Summit and a conference in Singapore.
Hoskinson argued that "parties" and large-scale events do not drive long-term price appreciation for ADA, which has been struggling to hold key price levels. Instead, he advocates for a radical shift in strategy toward building permanent, "living" community hubs worldwide. He emphasized that for the cost of the proposed event budget, Cardano could maintain up to six permanent offices operating like its existing hub in Buenos Aires.
"We have to bring new people in and show markets that Cardano is still alive and thriving. Going to parties doesn't do that, having permanent community hubs with people attending weekly events does," Hoskinson stated on social media platform X on April 11, 2026.
As part of this new strategic vision, Hoskinson also proposed that the treasury should cease issuing "free grants." Under his model, funded projects would return up to 30% of capital back to the treasury, which would then use the proceeds to buy ADA from the open market, creating natural buy pressure.
The community's governance vote to reject the 14 million ADA event budget demonstrates a practical alignment with Hoskinson's philosophy. This decentralized decision-making process highlights a significant shift in how blockchain projects approach growth, with Cardano stakeholders favoring sustainable development over short-term promotional events. The debate has divided opinion, with skeptics arguing coworking spaces won't lift prices in the short term, while supporters believe focusing on real development is crucial for competing with rivals like Solana and Ethereum.
