#CardanoDebate What will Hoskinson's plan lead to?
Hoskinson's plan can bring several potential benefits for the Cardano ecosystem, but it also carries certain risks. Let's examine the pros, cons, and possible consequences.
Advantages of the plan:
1. Diversification of assets
- Currently, the Cardano treasury consists predominantly of ADA, which creates high volatility and dependence on a single cryptocurrency.
- Converting part of the funds into stablecoins (USDT, USDC, DAI) will reduce the risk of a price collapse of ADA.
- Investing in Bitcoin will add stability, as BTC is considered less volatile than altcoins.
2. Creation of long-term income
- If part of the funds is invested in DeFi (for example, staking stablecoins or providing liquidity), it can generate passive income.
- The income can be reinvested in buying back ADA from the market, which will support the coin's price.
3. Sovereign wealth fund for Cardano
- Similar to national wealth funds (e.g., the Norwegian oil fund), such a reserve can provide stability and funding for the development of the ecosystem.
- Cardano will have a "financial cushion" for grants, hackathons, marketing, and other initiatives.
