Solana Co-Founder Critiques Cardanos Reserve Conversion Proposal as Misguided

The proposal to convert the treasury of Cardano into Bitcoin and stablecoins has been labeled «nonsense» by Anatoly Yakovenko, co-founder of Solana Labs. He made this statement in response to an idea put forth by the project’s founder, Charles Hoskinson.

Hoskinson’s suggestion involves swapping $100 million worth of ADA for Bitcoin and stablecoins in order to boost the DeFi segment within the network.

Yakovenko believes this exemplifies poor treasury management and sends a misguided signal to the Cardano community.

“Projects should maintain reserves for 18 to 36 months in short-term treasury bills, but not beyond that,” he stated.

The Solana co-founder also questioned the necessity for the protocol to hold digital assets on behalf of its users, stating, “Why would anyone want the team to buy and store Bitcoin for them when they can do it themselves?”

Trader Aaron Dishner remarked that this move could be seen as an acknowledgment from Cardano that the first cryptocurrency holds more value than its native token.

The initiative has generated mixed reactions within the community, with some members expressing concern that the sale of ADA could negatively impact the asset’s price.

Hoskinson dismissed these worries, asserting that the ADA market is sufficiently robust to absorb the sale without triggering a price collapse.

He described the plan as a bold step to enhance the project’s position in the DeFi sector, noting that only $33 million worth of stablecoins are currently deployed on Cardano, which he believes undermines the long-term viability of the network.

Despite the criticism, Hoskinson remains steadfast in his views. “Insults won’t change the objective reality. We have a way to resolve this,” he stated.

He also announced that a coalition will present a relevant proposal at the upcoming Rare Evo event, focused on the Cardano blockchain.

Additionally, the entrepreneur has recently disclosed plans for an audit of the Cardano Foundation’s treasury following allegations of misappropriating $600 million in ADA.