Solana Labs co-founder Anatoly Yakovenko has opposed Cardano’s leadership’s new proposal to convert part of its treasury into Bitcoin.
In a June 16 post on X, Yakovenko suggested the idea was misguided, arguing that it reflects poor treasury management and sends the wrong message to the Cardano community.
According to him:
“Projects should keep 18-36 months of post kill list runway in short term TBills, but that’s about it.”
The controversy stems from a June 13 proposal by Cardano founder Charles Hoskinson, who suggested that the blockchain network could redirect $100 million worth of ADA from its treasury into Bitcoin and stablecoins.
According to Hoskinson, the goal is to strengthen Cardano’s DeFi capabilities and resolve ongoing issues in its stablecoin ecosystem.
However, critics argue the proposal suggests a lack of confidence in the ADA token.
Crypto trader Aaron Dishner wrote that the move could be seen as Cardano admitting that Bitcoin is more valuable than its native token.
The Solana co-founder echoed these sentiments and questioned the need for any protocol to hold Bitcoin on behalf of its users, saying:
“Why would anyone want a team to buy and hold bitcoin for them when they can do it themselves?”
Cardano community divided as Hoskinson defends strategy
Meanwhile, the proposal has triggered mixed reactions within the Cardano community, with some worrying that a $100 million ADA sell-off to buy Bitcoin could hurt the token’s price.
Hoskinson, however, dismissed those concerns, saying the ADA market is deep enough to absorb the divestment without crashing.
He also defended the plan as a bold step to improve Cardano’s DeFi positioning, especially in stablecoin integration and liquidity. The Cardano founder highlighted the network’s competitive challenges in a crowded crypto landscape.
Hoskinson noted that only $33 million in stablecoins is currently deployed on Cardano, a figure he believes undermines the network’s long-term viability. He emphasized that the proposed treasury shift is a strategic response to this shortfall, not a sign of weakness.
Despite the controversy, Hoskinson stood firm, arguing that criticism won’t fix the underlying issues.
He stated:
“We have a means to fix it. Calling me names, egotistical, a cancer, or dictatorial isn’t going to solve that Objective reality.”
Considering this, Hoskinson said a coalition would submit a proposal about the plan at Rare Evo, an annual event focused on the Cardano blockchain.
