💥💥💥 Charles Hoskinson, founder of Cardano, proposed to sell $100 million in ADA from the Cardano treasury to acquire Bitcoin and stablecoins, with the goal of boosting the decentralized finance (DeFi) ecosystem of the network.
According to The Coin Republic, this measure seeks to increase the stablecoin issuance ratio and the total value locked (TVL) of Cardano to 30-40%, from the current 10%. Currently, Cardano's TVL is $356 million, with $31 million in minted stablecoins on-chain, according to data from DefiLlama. In comparison, Solana has a TVL of $9.8 billion and $11 billion in stablecoins, highlighting the gap that Hoskinson aims to close.
Hoskinson, in a live stream on YouTube, stated that this sale "would not cause liquidity issues" and would generate "non-inflationary revenue," arguing that the current situation of stablecoins is "killing Cardano." However, this proposal has sparked debate. For example, Frederik Gregaard, CEO of the Cardano Foundation, expressed in a CoinDesk article that TVL is not a key indicator of adoption, adding controversy to the plan. 💻👽
