Solana Labs co-founder Anatoly Yakovenko has recently shared his opposition to Cardano’s leadership’s proposal to convert a portion of its treasury into Bitcoin. In a post on X, Yakovenko expressed his concerns about the decision, stating that it reflects poor treasury management and may send the wrong message to the Cardano community.
Yakovenko suggested that projects should only keep 18-36 months of post-kill list runway in short-term TBills, indicating that the proposed shift to Bitcoin and stablecoins may not be the best strategic move for Cardano.
The controversy arose from a proposal by Cardano founder Charles Hoskinson to redirect $100 million worth of ADA from the treasury into Bitcoin and stablecoins. Hoskinson believes that this move will help strengthen Cardano’s DeFi capabilities and address issues within its stablecoin ecosystem.
Critics of the proposal argue that it implies a lack of confidence in the ADA token. Crypto trader Aaron Dishner pointed out that the decision could be interpreted as Cardano admitting that Bitcoin holds more value than its native token.
Yakovenko also questioned the need for any protocol to hold Bitcoin on behalf of its users, suggesting that individuals can easily manage their own Bitcoin investments without relying on a team to do so.
The Cardano community has been divided in response to the proposal, with some expressing concerns about a potential negative impact on ADA’s price if a $100 million sell-off were to occur. Hoskinson, however, reassured the community that the ADA market is deep enough to absorb the divestment without causing a crash.
He defended the strategy as a bold move to enhance Cardano’s DeFi capabilities, particularly in terms of stablecoin integration and liquidity. Hoskinson emphasized the network’s competitive challenges in the evolving crypto landscape, highlighting the need for strategic adjustments to ensure long-term viability.
Despite facing criticism, Hoskinson remained resolute in his decision, emphasizing that it is a necessary step to address the current challenges faced by Cardano. He stressed that simply criticizing the plan will not resolve the underlying issues and that action is needed to drive progress.
Hoskinson announced that a coalition would present a proposal regarding the treasury shift at Rare Evo, an annual event dedicated to the Cardano blockchain. This move indicates his commitment to transparency and community involvement in shaping the future direction of Cardano.