Charles Hoskinson to sue Wyoming over Cardano exclusion
Cardano developer invests big in Wyoming
Cardano founder Charles Hoskinson plans to sue the state authorities of Wyoming after his company, Input Output Global (IOG), was excluded from the Wyoming Stablecoin project.
According to Hoskinson, IOG served as a consultant for the Wyoming Stablecoin Commission for 18 months but was never informed about the criteria or procedures for selecting blockchains for the state-initiated Wyoming Stable Token (WST).
In March 2024, Wyoming enacted legislation establishing a commission to oversee the creation and issuance of a stablecoin backed by cash, U.S. Treasury bonds, and reverse repos, with strict maturity limits to ensure WST’s liquidity and stability. The stablecoin’s launch is scheduled for Q1 2025.
However, Hoskinson and his company were disappointed to learn that the Commission announced plans to launch the stablecoin using blockchains like Solana, Ethereum, Avalanche, Stellar, and several Layer 2 solutions, including Polygon and Optimism.
Hoskinson accused the Wyoming Stablecoin Commission of favoring certain blockchains and violating the state's fair procurement laws by bypassing the formal Request for Proposal (RFP) process.
The Commission’s Alleged Missteps
“Nothing was published, and an unelected bureaucrat decided unilaterally what Cardano can and cannot do, excluding a protocol valued at nearly $40 billion without any discussions or oversight. IOG wasn’t even allowed to participate in the RFP process. This is not what we’ve been fighting for in Wyoming these past years. It’s disgusting and shameful,” Hoskinson stated on his X social media account.
He emphasized that Wyoming-based companies, including IOG, which have invested heavily in the state’s development, may not benefit from the project. He also warned that excluding Cardano could harm Wyoming’s blockchain ecosystem.
Hoskinson revealed that his team is considering potential legal actions and other strategies to challenge the decision and cautioned that this issue could have political implications, especially during upcoming elections.
The Cardano Foundation, a Swiss non-profit organization dedicated to developing the Cardano blockchain infrastructure, has released its first Financial Insights Report, marking an important step in its commitment to transparency and accountability. This report, following the previous activity report, provides an in-depth look at the Foundation's financial allocations across key areas: operational resilience, education, and adoption.
