Odaily News Cardano co-founder Charles Hoskinson recently said in a live broadcast that he suggested converting $100 million of ADA tokens into stablecoins (such as USDM, USDA) and some Bitcoin within the Cardano ecosystem to promote the development of Bitcoin DeFi. He responded to outside doubts that the sale might affect the price of ADA, saying that "this is an inexperienced view" and emphasized that this move would not cause any problems.
Hoskinson hopes to increase the ratio of stablecoin issuance to TVL from the current 10% to 30%-40% through this plan. According to DefiLlama data, Cardano's current TVL is $356 million, and the issuance of stablecoins on the chain is only $31 million. In contrast, Solana's TVL is $9.8 billion, and the issuance of stablecoins is $11 billion.
Hoskinson said in a tweet that the lagging development of stablecoins is "dragting down Cardano", and the proposal can bring "non-inflationary income" and promote the construction of Cardano DeFi economy. It is worth noting that Frederik Gregaard, CEO of the Cardano Foundation, said in March that TVL is not an indicator for measuring ecological adoption. (CoinDesk)