Cardano Founder Proposes $100 Million Swap to Boost DeFi Ecosystem

Cardano founder Charles Hoskinson has proposed a significant strategic move, suggesting the conversion of $100 million worth of ADA tokens into Bitcoin and stablecoins. This proposal aims to inject real liquidity into Cardano’s decentralized finance (DeFi) ecosystem, which currently lags behind competitors in terms of stablecoin adoption and user activity. Hoskinson pitched the plan, suggesting that the $100 million worth of ADA be swapped into a mix of Bitcoin, USDM, and USDA. The primary goal is to supercharge Cardano’s DeFi scene by increasing stablecoin activity and kickstarting Bitcoin DeFi on the network.

Hoskinson’s proposal has sparked an internal debate within the Cardano community. Critics have raised concerns about the potential market impact of such a large swap, but Hoskinson dismissed these worries, asserting that ADA’s depth and trading volume can absorb the move. He also emphasized that the swap would not cause any problems, despite the potential for market sentiment to shift rapidly. Hoskinson’s blunt assessment highlighted that Cardano’s lagging DeFi and stablecoin footprint is “killing” the network. Currently, only about 10% of Cardano’s total value locked (TVL) is in stablecoins, compared to competitors’ much higher figures. Hoskinson aims to push this ratio to 30%–40%, believing the proposed swap would unlock non-inflationary revenue and establish Cardano as a serious DeFi player.

However, not everyone at Cardano agrees with Hoskinson’s approach. Some have taken a more cautious, infrastructure-first view of Cardano’s future, focusing on building a strong foundation rather than relying on flashy capital moves. Hoskinson’s proposal represents a significant shift in strategy, betting on an entirely new pace for Cardano’s growth. The method, if adopted, would likely involve dollar-cost averaging over a long period to avoid price shock. The broader impact may be psychological, signaling a recognition that without a thriving DeFi and stablecoin ecosystem, ADA risks getting left behind.

The proposal, if implemented, would mark the biggest capital shift in Cardano’s history. It signals a sense of urgency and a recognition that Cardano needs to adapt to remain competitive. This move is not just about treasury management but also represents a philosophical change within the Cardano community. It shifts the focus from narrative and ideology to interoperability and practical solutions. Whether the community embraces this reality or resists it, the next chapter for Cardano is already being written, with Bitcoin playing a central role in its future strategy.