$ADA Charles Hoskinson's proposal to use $100 million in ADA from the treasury to boost DeFi growth has generated interest and concern in the cryptocurrency community. Here is a breakdown of the proposal and its potential implications:
*Proposal Details:*
- Allocate 5-10% of Cardano's $1.2 billion treasury (approximately $100 million or 140 million ADA) to purchase Bitcoin and native Cardano stablecoins like USDM, USDA, and IUSD.
- Generate yield from these assets through real-world assets (RWAs), DeFi, or off-chain finance.
- Reinvest the profits back into ADA to strengthen the treasury and support future growth.¹ ²