Charles Hoskinson, the founder of Cardano, has proposed an ambitious plan to reshape the project's treasury, which could significantly transform its financial landscape and enhance its presence in DeFi.
A Self-Sustaining Wealth Fund for Cardano
Hoskinson stated that the Cardano treasury currently holds approximately $1.7 billion in ADA, with minimal allocation towards stablecoins. He suggested converting $100 million of the treasury into stablecoins like USDM, USDA, iUSD, and Bitcoin to generate income and improve liquidity on the network.
In Hoskinson's view, this could lead to a sovereign wealth fund-style model capable of generating annual yields of 5-10%. These returns would also contribute to buybacks of ADA, further strengthening the treasury.
Community Governance
A key point of Hoskinson’s plan is governance. He recommends establishing a board of reputable community members to oversee the proposed wealth fund. This management should be transparent and responsible for wise investments, thereby ensuring stable returns for the Cardano ecosystem.
While some community members fear that such a plan would take time to see price increases, others view it as a tactic that will lead to stability and growth in the long term.
The Future of Cardano in DeFi
Hoskinson believes that his plan could provide the necessary liquidity for Cardano to compete with other blockchain networks, particularly in the rapidly growing DeFi sector. He is confident that a well-managed treasury can significantly attract DeFi developers’ interest in the network and redefine what a blockchain treasury can achieve in decentralized finance expansion.
Hoskinson's ideas for transforming the Cardano treasury could unlock new opportunities for the ecosystem, offering sustainable growth paths and enhancing competitiveness in the DeFi sector.
