Within just one day, IOTA seems to have been through a storm. The German nonprofit that runs the IOTA blockchain invited trouble when an internal Slack conversation was leaked online, and people started commenting that the founders have no faith in Dominik Schiener. The heated comments by the founder were presented on many Reddit threads too. Now the Foundation has issued a clarification on the issue calling it an “emotional reaction.”
What Happened at IOTA?
Two of the founders of IOTA, Serguei Popov and Sergey Ivancheglo, did not join the board of directors at the time of registration of the Foundation. However, in March this year, a member of the current board, David Sonstebo, felt that the founders should be included in the board. The other two members of the board are Dominik Schiener and Ralf Rottmann.
A unanimous decision was made by the current board to nominate the “missing” founders as board members. However, this means that a change in the statute of the IOTA Foundation is required.
Currently, the right to nominate board members rests exclusively with Schiener. And to change this, a Supervisory Board resolution is necessary. However, the meeting of the Board is scheduled for September 2018, leading to significant delays between the decision to bring the founders onboard and actually nominating them.
In the update issued by the Foundation, it wrote:
“Unfortunately, sufficient priority was not given to this open issue, and there was a failure to keep the missing board members informed about progress.”
Following these months of stasis, the issue culminated in a heated discussion on our internal Slack, in which one of the founders asked Dominik Schiener, Chairman of the Board, to step down.”
Is This Significant for the Company?
In a way, including the “missing” founders on the board will be an important step for the Foundation. However, the discussion itself is to be taken with a grain of salt. Ivancheglo has since clarified that his comments were made as an emotional reaction to the situation he was in. Such emotional turmoil and disagreements between the founders and the board are a regular part of any project’s progress.
The stakes in IOTA’s case are higher because billions of dollars are on the line. It is unfortunate that the conversation was leaked, but the board now intends to move ahead. It will be important for them to understand that “leaked” conversations and internal fighting do more harm than good within any community.
The Foundation has decided that it will invite the founders onto the board of directors by virtue of a Memorandum of Understanding, which will be completed by August 10.