Solana co-founder criticizes Hoskinson's proposal to transfer 100 million USD ADA as "stupid"

Anatoly Yakovenko – co-founder of Solana Labs – has publicly opposed the new proposal from the leadership of Cardano regarding the transfer of a portion of the treasury funds to Bitcoin.

In a post on June 16 on X, Yakovenko argued that this idea is misguided, reflecting poor financial management and sending the wrong message to the Cardano community. He wrote:

The controversy originated from the proposal on June 13 by Charles Hoskinson – the founder of Cardano – to transfer 100 million USD worth of ADA from the treasury to Bitcoin and stablecoins. Hoskinson believes that this will enhance the DeFi capabilities of Cardano and help address the issues in the current stablecoin ecosystem.

However, many critics argue that this proposal reflects a lack of confidence in the ADA token itself. Cryptocurrency trader Aaron Dishner commented that this action is no different from Cardano admitting that Bitcoin is more valuable than their native token.

Yakovenko also expressed a similar view and raised the question:

"Why would someone need a development team to buy and hold Bitcoin for them, when they can do it themselves?"

The Cardano community is divided, Hoskinson defends the strategy

The proposal has sparked mixed reactions within the Cardano community. Some people are concerned that selling 100 million USD ADA to buy Bitcoin could put downward pressure on the token.

However, Hoskinson dismissed this concern, asserting that the ADA market is deep enough to absorb sales without collapsing. He defended the plan as a bold move to enhance Cardano's DeFi position, particularly in terms of stablecoin integration and improving liquidity.

Hoskinson pointed out that currently there are only about 33 million USD stablecoins active on the Cardano network – a figure he considers insufficient to ensure long-term viability. According to him, restructuring the treasury is an essential strategy to address this limitation, not a sign of weakness.

Despite the controversy, Hoskinson maintains his position and says that personal attacks do not help resolve the core issue. He declares:

"We have a way to fix it. Calling me arrogant, tyrannical, or the 'boil' of the system will not address the objective reality."

Hoskinson stated that an alliance within the community will officially submit a proposal at the Rare Evo event – the annual conference on the Cardano ecosystem.

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