Community Trust ScoreVerified
The Cardano community is once again in the spotlight after founder Charles Hoskinson firmly stated that the Cardano Treasury will not be used to cover exchange listing fees for ecosystem tokens like SNEK and Midnight. The clarification, delivered via a social media post, has stirred debate among community members over how Treasury funds should be used in a decentralized ecosystem.
Hoskinson’s comments came in response to a proposal made by SNEK, a leading meme coin in the Cardano ecosystem, seeking to withdraw 5 million ADA from the treasury. The funds would be used to secure a listing on a top-tier centralized exchange. However, Hoskinson dismissed the idea, stating that listing fees are a project’s own responsibility—regardless of community backing or long-term strategic value.
Treasury funds are for public infrastructure, not private listingsThe Cardano Treasury exists to fund development initiatives that benefit the entire ecosystem. According to Hoskinson, paying for commercial exchange listings does not fall under this mission. Even for Midnight—a privacy-focused sidechain built under the Cardano umbrella and backed by Input Output Global (IOG)—no exceptions will be made.
Despite his personal involvement in the Midnight project, Hoskinson emphasized that all projects, even those aligned closely with Cardano’s core development goals, must self-finance their listings when the time comes.
The cost of getting listed on a Tier 1 exchange is no small feat. Estimates suggest it can range from $100,000 to $500,000, making it a significant hurdle for community-driven projects like SNEK. The suggestion to use Treasury funds for such a purpose was met with mixed reactions from both supporters and critics.
Community supports core development with Treasury fundsWhile Hoskinson rejected using the Treasury for listings, the Cardano community recently approved the use of Treasury funds for essential network upgrades and protocol improvements. In particular, a significant allocation has been made toward work led by Input Output Engineering (IOE), Cardano’s primary development team.
The funds are being directed at three major initiatives:
Ouroboros Leios: Enhancing Cardano’s proof-of-stake consensus mechanism for improved network performance.
Hydra: The much-anticipated layer-2 scaling solution designed to facilitate faster and cheaper transactions.
Project Acropolis: A governance-focused effort aimed at improving Cardano’s modularity and decision-making capabilities.
Ricky Rand, General Manager at IOE, noted that the funding approval showcases the strength of decentralized governance within the Cardano ecosystem. He added that securing funds was only the first step and that timely delivery of the improvements will be key to ensuring trust and utility.
This decision also reinforces the Cardano community’s stance that Treasury funds should prioritize public goods rather than individual project promotion.
A new model: Treasury bonds instead of free grants?Although Hoskinson dismissed the idea of outright grants for exchange listings, he offered a compromise. He floated the concept of Treasury bonds, where projects could receive funding from the Treasury in the form of loans rather than non-repayable handouts.
Under this proposed model, projects would be able to access ADA with the condition that they repay the loan once they begin generating revenue. This approach, according to Hoskinson, could balance the need to support innovation without misusing community funds for commercial exposure.
This isn’t the first time the Cardano ecosystem has debated how its Treasury should be used. A recent proposal to convert part of the sovereign wealth fund into stablecoins was voted down, with many citing concerns over centralization and risk.
Still, the appetite for growth and experimentation remains high within the Cardano community.
Midnight airdrop and Rare Evo conference on the horizonDespite Hoskinson’s stance, interest in Cardano-based projects continues to rise. The Midnight project, which focuses on data protection and confidential smart contracts, is drawing attention ahead of its upcoming Glacier Drop airdrop. The airdrop is expected to generate further excitement around the project’s capabilities and utility.
In addition, the Rare Evo conference, scheduled for later this quarter, could provide more updates not only on Midnight but also on other emerging Cardano ecosystem projects. Community members are hopeful that the event will clarify roadmaps and encourage broader participation in Cardano governance and development.
Self-governance through Project Catalyst remains keyThe debate over treasury use once again highlights the importance of Project Catalyst, Cardano’s on-chain governance system that allows ADA holders to vote on proposals. As the ecosystem grows, so does the significance of responsible treasury management and transparent decision-making.
Community votes are expected to continue playing a central role in determining how funds are distributed. The rejection of proposals like SNEK’s listing fee request illustrates that even well-supported projects must align with the Cardano community’s long-term vision.
In the end, Hoskinson’s firm stance may frustrate some, but it reinforces a guiding principle for Cardano: public funds are for public infrastructure, not for private marketing.
