Cardano founder Charles Hoskinson presented a proposal to convert $100 million ADA reserves into Bitcoin and stablecoins aimed at developing DeFi.
Proposal for Reserve Conversion
According to Coindesk, Charles Hoskinson proposed using $100 million of ADA reserves to convert into Bitcoin and local stablecoins USDM and USDA. This is intended to strengthen the DeFi and stablecoin ecosystem.
Goals and Expected Outcomes
Hoskinson stated that his aim is to increase the stablecoin-TVL ratio from 10% to 30-40%. He noted that the current 10% ratio negatively impacts Cardano, with a total TVL of $356 million and only $31 million in minted stablecoins.
Criticism and Hoskinson's Response
Some critics expressed concerns that the $100 million sale could affect the price of ADA, but Hoskinson dismissed these concerns. He emphasized that the sale will not cause any problems and added that critics lack experience in the matter.
Hoskinson's proposal for converting reserves could play a significant role in the development of Cardano and strengthening the DeFi ecosystem, despite criticism and market participant concerns.
