Charles Hoskinson, co-founder of Cardano, proposed converting $100 million of ADA into Bitcoin and stablecoins, igniting lively discussions within the community.
Hoskinson's Proposal to Convert ADA
Hoskinson proposed converting $100 million of ADA to support decentralized finance (DeFi) and stablecoins within the Cardano ecosystem. He noted that this would increase the ratio of stablecoin issuance from 10% to between 30% and 40%.
Dispute with Gregaard on the Importance of TVL
Hoskinson's proposal creates a rift with Cardano Foundation CEO Frederik Gregaard, who believes Total Value Locked (TVL) is not a key metric for the network’s success. Gregaard emphasizes the importance of long-term utility for the ecosystem.
Role of Stablecoins in Cardano's Future
Hoskinson highlights the importance of stablecoins in the crypto economy, believing that fostering their adoption within Cardano will attract institutional investors and strengthen the DeFi ecosystem, making Cardano more competitive among other blockchains.
Hoskinson's proposal to convert ADA into Bitcoin and stablecoins could significantly impact Cardano, although it raises concerns about price volatility for ADA. The future of Cardano will depend on the further development of its DeFi ecosystem and community response.
