Cardano Whale Rejects IOG Proposals Triggers Governance Revolt as Founder Threatens Legal Action

A major Cardano (ADA) holder, referred to as “Whale,” has sparked controversy by rejecting all future proposals from Input Output Global (IOG), the development firm led by founder Charles Hoskinson. Whale, reportedly controlling approximately 6 million ADA in delegated voting power, accused IOG of misusing millions in ADA funds without delivering on promises. The move triggered a governance revolt as a vote on the 2025 Cardano Summit proposal commenced, with Whale urging stakeholders to delegate ADA to representatives opposing IOG’s initiatives [1].

Hoskinson responded swiftly, denying allegations of neglect in scaling development and dismissing the criticism as “pettiness on-chain.” He clarified that scaling work is “underway” and emphasized that Whale does not represent the broader community. The founder also revealed legal consultations following the accusations, hinting at potential defamation action. This legal stance has drawn comparisons to Craig Wright’s controversial strategies in the Bitcoin SV (BSV) ecosystem, where aggressive litigation allegedly harmed the project’s reputation. Some Cardano users fear a similar outcome if the dispute escalates further [1].

The community remains divided. Prominent user Cardano Rep shifted his delegation amid the debate, arguing against entirely abandoning IOG while acknowledging room for improvement. Others, including Toshi, sided with Whale, criticizing IOG’s focus on governance upgrades over core scaling solutions. Meanwhile, Hoskinson announced the completion of a draft audit addressing claims of a $500 million ADA discrepancy. He pledged to livestream the report’s release, signaling transparency efforts [1].

The conflict highlights growing tensions between stakeholders and developers in Cardano’s decentralized governance model. Whale’s actions represent a rare but significant challenge to IOG’s authority, testing the community’s ability to balance innovation with accountability. While Hoskinson’s legal threats aim to protect the project’s integrity, they risk alienating users who view the governance revolt as a legitimate push for fiscal responsibility. The outcome of the 2025 summit vote and the audit’s findings could determine whether the dispute resolves or deepens, marking a pivotal moment for Cardano’s governance dynamics [1].

Source: [1] [Cardano Whale Revolt: Rejects IOG, Hoskinson Threatens Legal Action] [https://coinmarketcap.com/community/articles/688125721337fa2746d3d3cf/]