Charles Hoskinson, known as the creator of Cardano, has proposed the creation of a Sovereign Wealth Fund for his ecosystem. This initiative is aimed at strengthening the financial stability of the community and long-term support for ADA.
How Hoskinson's Wealth Fund Will Work
In a recent podcast on X, Hoskinson detailed how the new fund would work. It is inspired by how countries, like Norway, deploy their wealth to invest in various assets for future growth. According to his plan, around $100 million worth of ADA will be taken from the treasury, with part converted into stablecoins and Bitcoin.
Bitcoin Investment and ADA Buyback Strategy
Hoskinson stated that profits from Bitcoin investments could be used to buy back ADA, increasing demand and supporting its price. He believes that reinvesting these profits over five to ten years could create a self-sustaining financial model that strengthens Cardano's future.
Community Support and Skepticism
While some members of the Cardano community welcomed the idea, others voiced skepticism. One member, Chad Luce, suggested that a Private Equity Fund or Green Energy Fund might attract more investors and yield better returns than the proposed SWF. However, Hoskinson emphasized the importance of diversification in ensuring ADA's growth.
Charles Hoskinson's initiative demonstrates Cardano's commitment to long-term growth and stability. Wisely utilizing part of the treasury for investments and supporting ADA could be a prudent strategy for safeguarding and developing the Cardano network in the future.
