Charles Hoskinson Proposes Using 100 Million USD from ADA Treasury to Buy Stablecoin and Bitcoin.
Charles Hoskinson proposes converting 100 million USD ADA into Bitcoin and stablecoin. Image: CoinGape
Stablecoin is "Choking" Cardano
Charles Hoskinson, co-founder of Cardano, has the idea to convert 100 million USD from the ADA treasury into stablecoin and Bitcoin.
During a livestream and subsequently on X, Hoskinson boldly declared: "the stablecoin situation is killing Cardano."
While competitors like Solana have reached 9.8 billion USD in TVL and 11 billion USD in on-chain stablecoin, Cardano is modest at 330–356 million USD TVL, with stablecoin only reaching around 31–33 million USD, a poor ratio compared to Ethereum (~190%) or Solana (~110%).
Source: DefiLIama (14/06/2025)
To overcome this weakness, Hoskinson proposes using 100 million USD ADA from the treasury to convert into:
Cardano stablecoins like USDM, USDA, and iUSD.
Bitcoin, to support DeFi projects built on the BTC network.
His goal is to boost the stablecoin/TVL ratio to 30–40%, creating a solid foundation for a truly competitive DeFi economy.
Countering "ADA Dump" Concerns
A wave of criticism quickly emerged, fearing that selling 100 million USD ADA would put significant pressure on market prices. Hoskinson called this opposing group inexperienced.
He argued that the treasury currently holds around 1.7 billion ADA (~1.2 billion USD). The conversion would only require 5–10% of the fund and would be executed over 30-90 days using methods like TWAP, OTC, or smart market allocation strategies to avoid impacting ADA's price.
This is the madness of trying to do anything with the treasury. People who have never traded large amounts of Ada presume that any trade will result in catastrophic harm to the price, using ChatGPT as the source for their claims.
— Charles Hoskinson (@IOHK_Charles) June 13, 2025
Markets are social animals, not static… https://t.co/eEMHclJTvH
Specifically, he called this a way to create "non-inflationary revenue" without printing additional ADA to fund the ecosystem, thereby making Cardano more sustainable in the long term.
Hoskinson not only proposed a single financial change but also opened a new path for investment fund governance, with the idea of establishing a management council structured like a sovereign wealth fund. This model would help ensure transparency, efficiency, and better risk control for large investments from the ADA treasury.
He also revealed that he will initiate official discussions at the Rare Evo conference after completing pending treasury withdrawal requests. The goal is to implement this immediately this year if community consensus is reached.
Conflicting Views with Cardano Foundation
While Hoskinson is eager to promote DeFi and values metrics like TVL or stablecoin volume, Frederik Gregaard, CEO of Cardano Foundation, stated that TVL is not a metric he uses to assess adoption. This statement was made in March during an interview with CoinDesk and is completely contrary to Hoskinson's current argument.
This difference in thinking partly reveals internal strategic conflicts, with one side wanting to open the market to compete with Ethereum, Solana, etc., while the other seems conservative and not emphasizing the financialization of DeFi.
Notably, Hoskinson recently caused a stir with his assertion that Ethereum "will not exist in the next 10-15 years". He frankly criticized its complex design, governance congestion, and excessive dependence on the core development team of the world's largest smart contract network.
ADA is currently trading at 0.64 USD, much lower than its previous ATH of 3.1 USD. Nevertheless, Cardano still maintains a position in the top 10 by market capitalization.
ADA price fluctuations over time, screenshot from CoinGecko at 12:05 PM on 14/06/2025
Compiled by Coin68
