Cardano founder Charles Hoskinson has come up with a unique and interesting proposal to boost Cardano’s DeFi ecosystem.
He has proposed creating a sovereign wealth fund that can invest up to $10 million in Bitcoin, with the aim of boosting the price of ADA.
Hoskinson said in a recent podcast that five to ten percent of the treasury will be converted into assets such as Bitcoin and stablecoins, which will not be detrimental to the price of ADA, but rather a positive stimulus.
This sovereign wealth fund will provide financial resources for the stability and growth of Cardano’s DeFi network.
Hoskinson further explained that the proceeds from this fund will be reinvested in Cardano purchases to further increase the price of ADA.
He is also convinced to continue this strategy on an annual basis, which could make the fund a stable asset worth billions of dollars in the next five to ten years.
The proposal is an attempt to bring Cardano on par with blockchain platforms such as Solana and Ethereum, which are ahead in terms of the proportion of stablecoins in their DeFi networks.
This investment will increase DeFi activity on Cardano’s network and increase the total value locked (TVL).
There have also been some reservations in the Cardano community over this proposal, with a prominent community member “Cardano Whale” opposing the sale of 140 million ADA in the current market conditions, as he fears a negative impact on the price.
However, Hoskinson said that the markets are deep and that he will invest slowly through OTC and TWAP strategies to avoid impacting the price.
Currently, the price of ADA is around $ 0.64, which is an increase of about two percent in the last 24 hours, this proposal is being considered an important step for the financial stability and price increase of Cardano.
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