💥 Is Charles Hoskinson's proposal a smart move or a risky gamble?
The proposal to use 140 million ADA (equivalent to ~100 million USD) from the treasury to buy BTC and native stablecoins on Cardano like USDM, USDA, and IUSD has sent shockwaves through the community, causing a 6% drop in ADA.
🎯 On one hand, some see it as a bold step to push DeFi on Cardano towards maturity and financial independence, linking the ecosystem to more globally recognized assets like Bitcoin.
⚠️ On the other hand, others view it as an uncalculated risk, especially given the lack of trust in on-chain governance, the possibility of mismanaging the treasury, or its impact on the circulating supply of ADA.
📈 My opinion? If the plan is executed with transparency and strict governance, this could be the cornerstone for transforming Cardano from just a Layer 1 into a self-sustaining financial system. But without that, it could be just a risky experiment that drives investors away.
💡 In the long run, this shift towards diversifying treasury assets could support ADA's stability against market fluctuations... but execution will be everything!
