Solana Co-Founder Criticizes Cardano’s Reserve Conversion Proposal

Converting Cardano’s treasury into the first cryptocurrency and stablecoins is “foolish,” stated Solana Labs co-founder Anatoly Yakovenko. He was commenting on a proposal by the project’s founder, Charles Hoskinson.

This is so dumb. Projects should keep 18-36 months of post kill list runway in short term tbills but that’s about it. Why would anyone want a team to buy and hold bitcoin for them when they can do it themselves? Why pay for all those coconuts.

— toly ?? (@aeyakovenko) June 16, 2025

The idea involves exchanging $100 million in ADA for Bitcoin and “stable coins” to boost the DeFi segment within the network.

Yakovenko believes this is an example of poor treasury management and sends the wrong signal to the Cardano community.

“Projects should keep reserves for 18-36 months in short-term treasury bills, but that’s about it,” he stated.

The Solana co-founder also questioned the necessity for the protocol to hold digital gold on behalf of its users.

“Why would anyone want a team to buy and hold Bitcoin for them when they can do it themselves?” he asked.

Trader Aaron Dishner wrote that this move could be seen as Cardano admitting that the first cryptocurrency is more valuable than its native token.

So let me get this straight. The #11 market cap coin wants to buy BTC because it recognizes that BTC is more valuable than itself. Did I get that right?

— Aaron Dishner (@MooninPapa) June 16, 2025

User Concerns

The initiative sparked mixed reactions within the community. Some participants are concerned that selling ADA could harm the asset’s price.

Hoskinson dismissed these concerns. He stated that the ADA market is deep enough to absorb the sale without a price crash.

It’s Monday, June 16th, 2025. While some of you babble on about feelings, ego, narcissism, and whatever else makes you feel psychological safety, others are coding, investing, partnering, and trading.

We aren’t in a static game with a guaranteed seat at the table. We are in an…

— Charles Hoskinson (@IOHK_Charles) June 16, 2025

The head of Cardano called the plan a bold step to improve the project’s position in the DeFi sector. He emphasized that only $33 million in stablecoins are deployed on Cardano, which he believes undermines the network’s long-term viability.

Despite the criticism, Hoskinson stood by his opinion.

“Insults won’t solve objective reality. We have a way to fix this,” he stated.

Hoskinson announced that a coalition will present the corresponding proposal at the annual Rare Evo event dedicated to Cardano blockchain.

Back in April, the entrepreneur announced an audit of the Cardano Foundation’s treasury following accusations of misappropriating $600 million in ADA.