Charles Hoskinson proposes investing 140M ADA to boost DeFi growth on Cardano

The founder of Cardano has presented an ambitious proposal: to use approximately 140 million ADA from the network’s treasury (equivalent to nearly $100 million) to strengthen the decentralized ecosystem. The strategy includes acquiring Bitcoin and native stablecoins of Cardano such as USDM, USDA, and IUSD, with the goal of generating liquidity and maturity in the project’s DeFi markets.

A growth strategy based on digital assets

Charles Hoskinson has argued that this investment represents a crucial step toward the sophistication of the Cardano ecosystem. By diversifying the treasury with Bitcoin and stablecoins, the network aims to strengthen its capacity to drive long-term DeFi initiatives. This move reflects the founder’s vision to position Cardano as a serious competitor in the decentralized finance space.

Accumulating Bitcoin symbolizes confidence in the dominant digital asset, while investing in native stablecoins reinforces the ecosystem’s autonomy and reduces dependence on external solutions. According to Hoskinson, this combination would create a more resilient environment for DeFi protocols to thrive natively on the Cardano blockchain.

Divided opinions: ambition versus governance risks

The Cardano community has shown mixed perspectives regarding the proposal. Some users and developers see the move as a sign of institutional maturity, valuing Charles Hoskinson’s strategic vision to scale the ecosystem. However, others express concern about the inherent risks in the current cryptocurrency market, questioning both the opportunity and the governance mechanisms behind this decision.

Critics argue that investing such significant resources in volatile conditions requires stronger community consensus. This debate reflects broader tensions about how decentralized projects should balance leadership vision with participatory governance.

Impact on ADA and future outlook

Following the announcement, ADA’s price experienced market volatility, reflecting investor uncertainty about the proposal. With ADA currently trading at $0.28 and a -3.43% change in the last 24 hours, market reactions remain sensitive to developments in Cardano governance.

Charles Hoskinson’s proposal could redefine how Cardano allocates its resources to compete in the DeFi space. If implemented, this strategy would position the ecosystem with concrete financial tools to attract developers and users. However, its success will depend on community consensus and market conditions in the coming months. The debate remains crucial in determining Cardano’s future direction and its relevance in the growth of decentralized finance.