Cardano co-founder Charles Hoskinson has floated the idea of converting $100 million worth of ADA tokens into bitcoin BTC and stablecoins.
“We could take $100 million of ADA in the treasury, convert it to a blend of stablecoins incumbent in Cardano so USDM and USDA and convert some of it in bitcoin to prime bitcoin DeFi,” Hoskinson said on a YouTube live stream.
He then hit back at critics that claimed a $100 million sale would impact the price of ADA, calling them “inexperienced” before adding that the sale “would not cause any problems at all.”
The goal of the sale would be getting the ratio of stablecoin issuance and TVL to around 30% to 40% versus the current roughly 10%.
Total value locked on Cardano stands at $356 million with just $31 million worth of stablecoins minted on-chain, DefiLlama data shows.
Solana meanwhile has $9.8 billion in TVL and $11 billion worth of stablecoins minted on-chain.
In a tweet Hoskinson said that the stablecoin situation is “killing Cardano” and that the proposal would generate “non-inflationary revenue” and help build the Cardano DeFi economy.
Hoskinson’s comments are at odds with those of Cardano Foundation CEO Frederik Gregaard, who told CoinDesk in March that TVL is not a metric he used for adoption.