Charles Hoskinson, the mind behind Cardano, is once again turning heads—this time with a bold new idea aimed at strengthening the ecosystem’s financial future. He shared a detailed update about a decentralized Sovereign Wealth Fund (SWF) for the Cardano ecosystem during a recent podcast.
From Bitcoin investments to ADA buybacks, this plan could bring long-term value and stability to the community.
But not everyone is on board just yet.
In his podcast on X, Hoskinson explained how the Cardano SWF would work. He said it’s inspired by how countries like Norway use their wealth to invest in various assets for future growth.
The idea is to take around $100 million worth of ADA from the treasury and convert some of it into stablecoins and Bitcoin.
This isn’t about abandoning ADA; in fact, it’s the opposite. The plan is to invest a portion of treasury funds into less volatile assets to earn yield, then use those earnings to repurchase ADA over time.
This strategy, according to Hoskinson, would help grow ADA’s value and strengthen the entire Cardano ecosystem in a sustainable way.
Hoskinson suggested that profits from the Bitcoin investment could be used to buy back ADA, which could increase demand and support its price. He believes that by reinvesting these profits every year over five to ten years, the community could create a self-sustaining financial model that strengthens Cardano’s future.
This move isn’t just about making money; it’s about making Cardano stronger in the long run without risking too much of its core treasury.
While some members of the Cardano community welcomed the idea, others had different thoughts. One member, Chad Luce, suggested that a Private Equity Fund or Green Energy Fund might bring in more investors and better returns than the proposed SWF.
Despite mixed reactions, Hoskinson made it clear that diversification is key and that long-term planning is essential for ADA to grow and thrive.
Charles Hoskinson’s proposal shows that Cardano is focused on long-term growth, not short-term hype. By using part of the treasury wisely, building profits, and supporting ADA, the Sovereign Wealth Fund could become a smart way to protect and grow the Cardano network for years to come.
As of now, Cardano ADA price is trading around $0.64, reflecting a drop of 5.4% in the last 24 hours, with a market cap hitting $10.9 billion.
The Cardano SWF aims to boost ADA’s long-term value by investing treasury funds in stablecoins and Bitcoin to earn yield, then using those profits for strategic ADA buybacks, increasing demand and strengthening the ecosystem.
Some community members are skeptical, with concerns raised about voter participation, the potential for whale dominance in decision-making, and whether a Private Equity or Green Energy Fund might yield better returns and attract more investors.
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