Cardano founder Charles Hoskinson has proposed to convert $100 million from the protocol's treasury into its native stablecoin, USDM. He believes this could lead to significant annual revenue.
Hoskinson's Idea to Convert ADA to USDM
Hoskinson hopes that this initiative will increase liquidity on the network and create a steady income for the Cardano treasury. He mentioned that expected annual returns could range from $5 million to $10 million. Currently, the Cardano treasury holds about 1.7 billion ADA, worth over $650 million.
Strategy to Enhance Cardano's Liquidity
Hoskinson suggested using liquidity income to buy back ADA and refill the treasury. He has observed a growing interest from major tech companies in digital currencies, which could influence cryptocurrency adoption. He also pointed out that the governance tool, Intersect, designed to manage treasury funds and proposals, has been underutilized.
Future of Cardano with Private Stablecoins
In a recent interview, Hoskinson expressed the desire to make Cardano the first blockchain with a private stablecoin. He clarified that such a stablecoin could offer selective data disclosure to meet regulatory compliance. This initiative could pave the way for attracting external investments and promoting innovation within the network.
The idea of converting ADA to USDM and developing private stablecoins could significantly alter Cardano's prospects, strengthening its position in the rapidly evolving cryptocurrency landscape.
