Solana Labs co-founder Anatoly Yakovenko has publicly criticized a proposal by Cardano founder Charles Hoskinson concerning the management of Cardano’s treasury reserves. Yakovenko contends that Hoskinson’s idea to convert a portion of ADA holdings into Bitcoin represents a misstep in treasury management strategy and could potentially undermine investor confidence in the project.
Hoskinson’s proposal involves converting approximately $100 million worth of ADA from Cardano’s treasury reserves into Bitcoin and stablecoins. The stated goal is to bolster decentralized finance (DeFi) infrastructure support within the Cardano ecosystem and enhance the stability of its stablecoin frameworks.
Yakovenko, however, advocates for a different approach. He argues that blockchain projects should primarily allocate treasury reserves to short-term U.S. Treasuries, sufficient to cover 18-36 months of operating expenses, rather than volatile assets like Bitcoin. Critics of Hoskinson’s plan argue it signals a lack of confidence in ADA’s intrinsic value and could negatively impact its market price.
Some industry observers question the fundamental necessity of a protocol holding Bitcoin reserves on users’ behalf, suggesting investors can manage their own Bitcoin exposure independently. Within the Cardano community itself, reactions to the proposal are reportedly mixed. While concerns persist that selling large amounts of ADA for Bitcoin could exert downward pressure on ADA’s price, Hoskinson has asserted that existing market liquidity is adequate to absorb the proposed transaction.