Cardano Faces Internal Rift as IO Research Vote Exposes Structural Tensions

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• The Cardano community clashes over a funding proposal that seeks to use millions on research.

• Charles Hoskinson is at the centre of the rift as he warns that rejecting the proposal could force Cardano’s research lab to shut down.

The Cardano community is facing one of its greatest tests since it transitioned into a fully decentralized, on-chain governance model. The debate surrounds an Input Output (IO) Research funding proposal supported by Charles Hoskinson, which seeks to allocate millions of dollars into research. Critics argue that these funds could be better used in practical uses that promote growth and adoption of the Cardano ecosystem.

一部の日本のdRepが私たちの研究提案に反対票を投じたことに、深い悲しみを覚えています。…

— Charles Hoskinson (@IOHK_Charles) May 20, 2026

Hoskinson accuses several Japanese Delegate Representatives (dReps) of voting against the critical funding proposal, which seeks $52 million in funding, a drop from last year’s $98 million. The Cardano co-founder warns that if the proposal fails, scientists involved with the network will leave. He says that these researchers should be viewed as precious assets to the ecosystem.

Critics of the proposal argue that for far too long, Cardano has been focused on solutions for the wider crypto space, while ignoring its own. By rejecting the proposal, they are calling on the team to focus on growing the network and promoting better adoption. They propose that the funding should be broken into parts, and the team can pick and choose which projects deserve to be supported.

Hoskinson rejected this approach, stating that it is not practical and it is hard to choose those who deserve to go and those who should remain.

The critics who are against the proposal point to ADA coin’s recent performance. Once a top ten coin, valued at over $100 billion, it has now dropped to 13th and lost over 91% of its value over the last 5 years.

What is Cardano Risking?

Hoskinson says that Cardano has always been a “science coin,” which means it has been led by research. Over the years, countless researchers have been involved in the ecosystem to find some of the biggest problems in the blockchain space. For example, Hoskinson notes that Cardano was the first network to publish a proof-of-stake protocol whitepaper, figure out how to create sidechains on Bitcoin, and bring DeFi to Bitcoin. According to Hoskinson, such innovations have distinguished the Cardano ecosystem from its peers.

On Science https://t.co/2SzNmG44LD

— Charles Hoskinson (@IOHK_Charles) May 20, 2026

He warns that if the network begins to dismantle its research group, it will simply lose relevance in the market. Furthermore, some of its scientists will move to competing chains such as Solana, Ripple, and Ethereum. Once those scientists are gone, they can never come back to a place where they are not rewarded and respected, says Hoskinson. Furthermore, it will signal to the market that Cardano is no longer innovative and ultimately lead to it falling behind its competitors.

“We don’t get to where we need to be, by destroying the things that we need to earn the future…this is the core of Cardano.”

Now, the cofounder is calling on the dReps who haven’t voted to vote in support of the proposal and urges those who have voted against it to change their vote.