Crypto Sister

06/15 08:52

Cardano with an unconventional idea for a new cryp

Cardano with an unconventional idea for a new crypto fund

Cardano's management has launched an unconventional idea: to turn part of the project's budget into a revenue-generating wallet containing Bitcoin and tokens pegged to the US dollar.

The plan, outlined by founder Charles Hoskinson in a recent livestream, envisions exchanging around $100 million in ADA – about a tenth of the network’s coffers – into liquid assets that can be lent, staked or used as market-making capital within Cardano’s DeFi protocols.

Supporters say the change will address Cardano’s biggest weakness: the lack of liquidity of stablecoins. There are currently only about $33 million in dollar-denominated tokens circulating on the network, compared to a total DeFi value pegged at around $330 million.

Competing networks report much richer ratios—Ethereum’s stablecoin supply exceeds TVL, while Solana’s hovers above 100%—making them more attractive to yield hunters. A sovereign-type fund earning around 5-10% per year could recycle the profits back into ADA buybacks or new grants, seeding a self-perpetuating growth spiral.

Skeptics worry that a withdrawal of 100 million ADA could crash the token’s price. Hoskinson counters that ADA’s daily volumes regularly exceed hundreds of millions of dollars; if executed slowly through OTC desks or time-weighted algorithms, a trade could close in a few months with minimal variance — “well under half a percent,” he claims.

A draft governance framework, including a board of financial and Web3 specialists, as well as an on-chain audit, is circulating among the core teams and is likely to be presented at the Rare Evo conference later this year. If approved by the community, Cardano’s treasury could transform from a static pile of ADA into an actively managed fund designed to finance the next wave of decentralized applications on the chain.

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