Anatoly Yakovenko, co-founder of Solana Labs, opposed Cardano's new leadership proposal to convert parts of the Treasury into Bitcoin.
In a June 16th post on X, Yakovenko suggests that the idea holds a false gaze, claiming it reflects poor financial management, sending the wrong message to the Cardano community.
According to him:
“The project needs to maintain a 18-36 month Killlist runway with short-term Tbills, but that's about it.”
The controversy stems from a June 13 proposal by Cardano founder Charles Hoskinson. Charles Hoskinson suggested that the blockchain network could redirect $100 million worth of ADA from the Treasury to Bitcoin and Stubcoin.
According to Hoskinson, the goal is to strengthen Cardano's capabilities and solve the ongoing problems in the Stablecoin ecosystem.
However, critics argue that the proposal suggests a lack of confidence in ADA tokens.
Crypto Trader Aaron Dishner writes that the move is considered Cardano, acknowledging that Bitcoin is more valuable than native tokens.
The Solana co-founder reflects these feelings and questioned the need for a protocol to retain Bitcoin on behalf of users, saying:
“Why would you want your team to buy and hold Bitcoin when they can do it themselves?”
The Cardano community has been split as Hoskinson defends the strategy
Meanwhile, the proposal will trigger a mixed reaction within the Cardano community, with some worried that the sale of a $100 million ADA to buy Bitcoin could hurt the price of the token.
However, Hoskinson dismissed these concerns and said the ADA market is deep enough to absorb the sale without crashing.
He also defended the plan as a bold step to improving Cardano's Defi positioning, particularly in Stablecoin integration and liquidity. The founders of Cardano highlighted the competitive challenges of the network in a crowded crypto landscape.
Hoskinson noted that only $33 million Stablecoins are currently being deployed in Cardano. He emphasized that the proposed Treasury change is a strategic response to this shortage and not a sign of weakness.
Despite the controversy, Hoskinson stood firm, claiming that criticism did not solve the underlying problem.
He said:
“We have a way to fix it, calling me a name, a selfish, cancerous or authoritarian name.
With this in mind, Hoskinson said the coalition will submit proposals for plans at Rare Evo, an annual event focused on the Cardano Blockchain.
