Charles Hoskinson, founder of Cardano, has proposed converting $100 million worth of ADA from the Cardano treasury into USDM, a stablecoin natively backed by Cardano. The move is intended to boost stablecoin liquidity across the Cardano ecosystem and could yield estimated annual returns of 5–10%. Hoskinson envisions redirecting these profits into ADA buybacks for the treasury, helping to build a self-sustaining economic model for the network.
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Meanwhile, the Cardano Foundation, the non-profit entity behind the network’s growth, disclosed assets totaling $478.24 million as of December 31, 2023. The asset distribution included 82.5% in ADA, 10.1% in Bitcoin, with the rest held in USD.
However, the community is expressing concern over a proposed 2025 budget that could involve selling up to 500 million ADA tokens. Critics warn that even a gradual release of such a large amount could exert downward pressure on the market.