Cardano's IOG Steps Down from Interim Constitutional Committee, Price Drops 2.867%

Cardano's latest price was $0.7256, down 2.867% in the last 24 hours. The development studio behind Cardano, Input Output Global (IOG), has announced that it will step down from the blockchain’s Interim Constitutional Committee once community elections conclude this summer. This decision represents a significant change in Cardano's governance structure, as IOG has been a pivotal player in the blockchain’s development and transition phases. In a three-part X thread published on May 28, IOG expressed its honor in serving on the committee but stated that it will not stand for reelection. IOG emphasized its confidence in the Cardano community’s ability to choose talented individuals to fill the roles.

IOG highlighted its role during the Chang hard fork in August 2024, where it helped guide the process during a period of transition. The firm pledged to continue casting on-chain votes and publishing rationales until its mandate expires. IOG also urged prospective candidates to consult resources assembled by Intersect, the member-based organization coordinating governance matters, and to draw on the support offered by Intersect and existing ICC members to facilitate the election. Cardano founder Charles Hoskinson echoed IOG’s sentiment, stating that the company’s last official role is soon ending and that it has been an honor to serve with the community. He also expressed excitement for new ideas and leadership within the Cardano ecosystem.

The Interim Constitutional Committee (ICC) was established alongside the first phase of the Chang upgrade in late August 2024. This hard fork introduced the foundations of on-chain governance to Cardano’s Conway-era ledger, empowering ADA holders to elect delegates (dReps) and submit governance actions. The upgrade required an oversight body while the full Constitutional Committee framework was being finalized. Intersect’s election roadmap sets out five phases that run through the northern summer. Candidate registrations opened on May 1 and close on May 31, with campaigning occurring in parallel. Token-weighted voting will then run from June 10 to July 10, followed by onboarding and credential generation for the seven successful candidates from July 10 to August 1. Formal ratification, including an on-chain governance action to recognize the new committee, is scheduled between August 1 and September 1. The three highest-vote recipients will serve two-year terms, while the remaining four will sit for one year to create a staggered election cycle.

IOG’s withdrawal from the ICC does not diminish its technical role in Cardano’s open-source development. However, it signals a decisive shift in governance, as founding entities will henceforth compete on equal terms with community candidates if they wish to help police the Constitution. This shift fulfills the Voltaire-era promise of “governance by the holders,” a milestone repeatedly described by Hoskinson as the final piece of Cardano’s original roadmap. The forthcoming ballot will test the viability of large-scale, token-weighted elections on a live L1 network and will give over 4 million ADA wallets a direct say in who interprets and enforces the Cardano Constitution. Should the schedule hold, Cardano will enter September with its first fully elected Constitutional Committee in place, while the company that launched the chain steps back to the same arm’s-length status as every other participant.

Cardano founder Charles Hoskinson has directly challenged critics to provide “credible evidence” to support accusations against Cardano and its founding entities. The Cardano founder’s response came during an escalating dispute on X about transparency and accountability within the project. Hoskinson pushed back against claims that have circulated within the cryptocurrency community, demanding evidence to support the accusations. He questioned the motivations of those making accusations and wondered about potential consequences when their claims are investigated. The exchange intensified after Hoskinson criticized what he called a “slander cabal” that has spent months attacking Cardano and its core entities. Hoskinson’s demand for evidence follows mounting pressure from various parties questioning aspects of Cardano’s operations.

A community member responded to Hoskinson’s evidence request by referencing blockchain analysis conducted by researcher Masato Alexander. The analysis focuses on identifying unclaimed UTXOs (Unspent Transaction Outputs) within the Cardano network. The community member clarified their position and stated they don’t believe Hoskinson or Input Output Global stole funds. However, they acknowledged that a broader understanding of certain transactions only came to light through the researcher’s work. The community member expressed appreciation for using blockchain transparency to hold founding entities accountable. Meanwhile, Optim Finance has announced that they are preparing a formal statement addressing the controversy. Their preliminary response acknowledges making mistakes while outlining their future approach. This response suggests Optim Finance is taking a conciliatory approach while maintaining its position on the underlying issues. Their reference to avoiding “weak boy energy” appears to be a veiled criticism of how others have handled the dispute. The dispute highlights ongoing tensions within the Cardano ecosystem about transparency expectations and accountability standards. While blockchain technology provides visibility into transactions, interpreting and understanding that data still remains hard.