Cardano co-founder Charles Hoskinson has floated the concept of changing $100 million price of ADA tokens into bitcoin
and stablecoins.
“We may take $100 million of ADA within the treasury, convert it to a mix of stablecoins incumbent in Cardano so USDM and USDA and convert a few of it in bitcoin to prime bitcoin DeFi,” Hoskinson mentioned on a YouTube dwell stream.
He then hit again at critics that claimed a $100 million sale would influence the value of ADA, calling them “inexperienced” earlier than including that the sale “wouldn’t trigger any issues in any respect.”
The objective of the sale could be getting the ratio of stablecoin issuance and TVL to round 30% to 40% versus the present roughly 10%.
Complete worth locked on Cardano stands at $356 million with simply $31 million price of stablecoins minted on-chain, DefiLlama information reveals.
Solana in the meantime has $9.8 billion in TVL and $11 billion price of stablecoins minted on-chain.
In a tweet Hoskinson mentioned that the stablecoin scenario is “killing Cardano” and that the proposal would generate “non-inflationary income” and assist construct the Cardano DeFi economic system.
Hoskinson’s feedback are at odds with these of Cardano Basis CEO Frederik Gregaard, who advised CoinDesk in March that TVL just isn’t a metric he used for adoption.
