Cardano founder Charles Hoskinson has made another proposal for a Cardano-focused ecosystem treasury reserve, steering community reaction.
He has been persistently seeking ways to put the ecosystem’s dormant ADA treasury to work, with a suggestion in a July 8 X post becoming the latest proposition. Recall that he had earlier proposed using a portion of the stash to buy Bitcoin or a native stablecoin, teasing that it would boost Cardano DeFi and TVL.
New Proposal for Treasury Utility
In the Tuesday tweet, Hoskinson sought the thoughts of the Cardano community on an ecosystem digital asset treasury containing ADA, Midnight, and the top 50 Cardano native tokens.
Notably, this proposal bears a resemblance to his initial suggestions, but this time, he has looked inward. Recall that his call to buy and hold Bitcoin as a treasury asset sparked widespread criticism, with skeptics alleging that a top 10 project has found solace in another major rival.
The proposal would see Cardano set up a treasury that includes the Midnight token and other high-ranking native tokens. Data from CoinGecko shows that some of the top Cardano ecosystems include SNEK meme coin, World Mobile Token (WMTYX), Liquid Finance (LQ), Minswap (MIN), and Indigo Protocol (INDY).
Top 50 Too Broad?
Interestingly, the proposal started a community discussion as proponents shared their thoughts. Notably, a few users emphasized that the top 50 Cardano native tokens would encompass a lot of random tokens without intrinsic use cases.
A user stated that he is not a fan of using Cardano’s treasury to buy meme coins, while a few other reactions suggested that the proposal would be more productive if it focused on the top 20 or 25 Cardano-native tokens.
However, while a handful of the reactions supported the proposal or something similar, a few others disagreed. For instance, a user favored Hoskinson’s initial idea of a stablecoin investment, insisting that Cardano should fix its stablecoin liquidity issues.
Remarkably, Hoskinson’s proposals all aim at moving Cardano’s treasury from an unmanaged single-asset on-chain reserve to a multiple-coin off-chain treasury. He believes this would generate yield for the ecosystem and, in turn, boost reserves.
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