Charles Hoskinson Proposes $100M ADA DeFi Stimulus—Bold Vision or Risky Bet?
Cardano founder Charles Hoskinson has sparked intense debate with a bold new proposal: allocate 140 million ADA (around $100 million) from the Cardano treasury to supercharge DeFi growth. The plan involves purchasing Bitcoin and Cardano-native stablecoins like USDM, USDA, and iUSD—essentially converting treasury funds into more diversified on-chain liquidity.
The goal is clear: strengthen Cardano’s DeFi ecosystem and attract more users and developers by creating deeper, more stable liquidity pools. According to Hoskinson, this move could help Cardano compete more effectively with leading DeFi platforms and signal ecosystem maturity.
But not everyone is on board.
Following the announcement, ADA's price dropped by 6%, reflecting community skepticism. Critics argue that using treasury funds in this way poses a serious risk, especially amid uncertain market conditions. Others raise concerns about governance transparency and the lack of a clear execution framework for managing such significant assets.
Still, supporters see the proposal as a long-overdue catalyst that could help Cardano gain momentum in the DeFi race, where it has lagged behind Ethereum, Solana, and others.
This proposal represents more than just a financial maneuver—it’s a referendum on Cardano’s direction. Is it ready to act boldly to secure its place in the next phase of Web3?
What’s your view? Would this strategic use of treasury funds increase long-term ADA value, or does it open the door to greater volatility and risk?
