Charles Hoskinson's proposal to inject a significant chunk of Cardano's treasury into Bitcoin and stablecoins is a move that's got the community buzzing, and not always in a good way. The appeal of dollar inflation protection combined with a turbocharged DeFi ecosystem is alluring. The reality is far more complicated, especially for the smallest ADA holders who have fed and grown this ecosystem from seedling.

This whole danger harkens back to a small town tampering with their own arbitrarily dangerous decision. So they take all their money and put it in one very risky stock. Of course, it opportunity might pay off big, but what if it doesn’t? What’s going to happen to those mom-and-pop shops? Because small businesses depend on that budget for their economic life. Are we just giving up on the present in the hope of a greater future, a future that may never even come to pass?

When I spoke with some community members, the anxiety was evident. One of the stakers, who asked not to be named, said they are worried about the selling pressure that might entail on ADA. I’ve just been re-staking my ADA for the past few years,” they replied. I support the project, but I am concerned that this relocation will significantly reduce the value of my holdings. It just has the appearance of the big guys getting to pick the winners and losers among the little guys.

This isn’t only a financial issue, but rather a confidence issue. This is in part the feeling of participation and ownership from working on a decentralized project. When deciding something this big, you need to make it really, really clear how this is a win for all. That doesn’t mean this should only be about the whales.

Hoskinson’s second angle assumes Bitcoin a hedge against USD inflation, a “wealth-safeguard asset.” As much as I can appreciate the logic behind that, it starts to feel like a sign of surrender. If Cardano is as revolutionary a platform as it claims to be, surely it should or could be robust enough to survive on its own two feet right? Does that mean this is a vote of no confidence in ADA the organization itself?

The analogy to Michael Saylor and MicroStrategy is provocative, but more than a little creepy. Saylor’s success will play on him having access to credit markets directly, something the average ADA holder will never see. Are we stepping into a future where Cardano becomes another playpen for the rich? Will the little guys get locked out in this future?

I am encouraged by the possibilities this action provides. When it does, it could drive a further wedge between the “haves” and “have-nots” on Cardano. More stablecoin liquidity could reduce arbitrage opportunities from lending/borrowing on dApps, but who stands to gain the most from that lowered risk? Those who have the necessary capital to invest in those endeavors. It means that smaller ADA holders—like many of us who are living paycheck to paycheck—would be left out in the cold.

Even as Hoskinson points his sights on Bitcoin and stablecoin shooters, are we still ignoring the core issues that are keeping Cardano down? Transaction processing speed is still a top issue, and a gleaming new SBW isn’t going to change that.

  • Potential Benefits:
    • Increased stablecoin liquidity
    • Potential ADA price boost
    • A more robust DeFi ecosystem
  • Potential Risks:
    • Selling pressure on ADA
    • Disproportionate benefits for large holders
    • Erosion of community trust

It’s past due for some honest dialogue around where Cardano is going. Hoskinson and the Cardano Foundation need to hear the community’s frustration. They should listen hardest to those voices who are most muffled by the clamor. This goes deeper than a bad financial investment, this is an attack on the heart of Cardano.

So, what can we do? What do we need to do to make sure that this audacious agenda doesn’t overwhelm the Cardano community, but emboldens them instead?

First, transparency is key. The Cardano Foundation still needs to start publishing a line-item accounting of how those funds are being managed. Specifically, they must describe how they will distribute benefits equitably and detail their plans to fade risks.

Second, community input is essential. Host town hall roundtables, circulate surveys, and make a real effort to reach feedback from ADA holders, large and small. Give everyone a place to sit at the table.

Third, focus on education. Here’s the rub – most community members won’t ever be able to grasp the technical nuances of such a plan. Share helpful, easy-to-understand FAQ-style content to educate them and empower them to advocate for the best possible solutions.

This isn’t only about Cardano’s future, though it’s about the future of decentralized finance. Together, let’s ensure we’re building an inclusive, equitable future that truly lifts up all of us. Share your thoughts, your concerns and your hopes for Cardano. Let's make our voices heard. What do you think?

First, transparency is key. The Cardano Foundation needs to provide a detailed breakdown of how the funds will be managed, how the benefits will be distributed, and how the risks will be mitigated.

Second, community input is essential. Hold town hall meetings, conduct surveys, and actively solicit feedback from ADA holders of all sizes. Make sure everyone has a seat at the table.

Third, focus on education. Many community members may not fully understand the technical complexities of this plan. Provide clear, concise explanations and resources to help them make informed decisions.

This isn't just about Cardano's future; it's about the future of decentralized finance. Let's make sure we build a future that's inclusive, equitable, and truly empowers everyone. Share your thoughts, your concerns, and your hopes for Cardano. Let's make our voices heard. What do you think?