Cardano founder Charles Hoskinson has proposed deploying 140 million ADA (~$100 million) from the treasury to purchase Bitcoin and Cardano-native stablecoins like USDM, USDA, and iUSD.
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$ADA dropped ~6% after the announcement, sparking intense debate in the community.
🧠 What’s the Plan?
Hoskinson's idea aims to:
Increase liquidity in the DeFi ecosystemDiversify the Cardano treasuryProvide yield back to the treasury by using BTC & stablecoins in DeFi protocols
⚙️ He suggests doing this gradually using OTC deals or algorithmic trading (like TWAP) to avoid crashing the market.
🔍 Why Stablecoins? Why Now?
Cardano DeFi is still small compared to Ethereum and Solana. Stablecoins are the missing piece. Without them:
Liquidity is lowYield opportunities are limitedTVL remains stagnant
Hoskinson believes this move can “bootstrap liquidity” and unlock real DeFi growth.
⚖️ Community Reactions Are Split
✅ Supporters say:
It's a bold step toward ecosystem maturityStrategic diversification will bring long-term benefitsCould kickstart the path to a $1B “sovereign-style” treasury fund
⚠️ Critics argue:
Selling 140M ADA might hurt price furtherProposal was announced too publicly—could invite front-runningNo formal on-chain governance vote yet
📊 Why This Matters
This proposal shows Cardano is evolving from a tech-focused blockchain to a capital-efficient financial ecosystem.
But the path is risky — it requires trust, transparency, and flawless execution.
🔮 My Take
This is one of the most important proposals in Cardano’s history. If it succeeds, it could change the trajectory of the entire ADA ecosystem.
But if it's poorly executed? It may damage trust, liquidity, and token value.
💬 What do you think? Should Cardano use its treasury to buy Bitcoin and stablecoins?
Drop your thoughts below 👇
#Cardano #DeFi #Hoskinson