Charles Hoskinson, the well-known co-founder of Cardano, has proposed a major new plan: to spend $100 million in ADA from the project’s treasury to help jumpstart the network’s struggling DeFi sector and improve its weak stablecoin presence.

The proposal includes converting some of Cardano’s treasury ADA into a mix of Bitcoin (BTC) and Cardano-native stablecoins, such as USDM, USDA, and iUSD. Hoskinson believes this move could finally position Cardano as a serious player in the decentralized finance space.

He called the network’s poor stablecoin adoption a major weakness, stating:

“What is killing Cardano is our stablecoin situation. This would start to solve it.”

Hoskinson also argued that the plan could help the treasury generate non-inflationary income—revenue that doesn’t require creating more ADA—and breathe new life into the broader Cardano DeFi ecosystem.

Community Concerns: Could This Crash the ADA Price?

Despite the potential upside, many in the Cardano community are concerned about one thing: the impact of selling $100 million worth of ADA on the open market.

If such a large amount of ADA were sold all at once, wouldn’t it push the price down?

Hoskinson says no.

In a livestream, he dismissed fears of a price crash, explaining that the market is deep enough to absorb the sale without any real impact. He claimed:

“100 million in ADA can be placed in the market within 90 days with no movement of the price. The markets are deep. Billions of dollars of ADA trade hands every week.”

He added that belief in Cardano’s future could create enough demand to match the sale. If such a sale did cause extreme volatility, he argued, it would suggest the market is far less stable than people assume.

A Push to Reignite Cardano DeFi

The goal of this proposal goes beyond just raising cash. It’s about reviving Cardano’s DeFi ecosystem, which has lagged behind competitors like Ethereum, Solana, and Avalanche.

The plan involves partnering with major DeFi projects in the Cardano ecosystem to build out new products and attract users. This includes stronger support for stablecoins, which are critical for borrowing, lending, and trading in DeFi platforms.

By holding both BTC and Cardano-native stablecoins, Hoskinson believes the treasury can generate returns without risking inflation—creating a more sustainable financial base for the protocol.

Market Snapshot: ADA Still in the Red

Even as Cardano eyes this major strategic shift, its native token ADA has struggled. At the time of writing, ADA is trading at around $0.60, down 16.9% over the past 30 days, according to data from CoinGecko.

This performance highlights the urgency behind Hoskinson’s plan. Without bold action, Cardano risks falling even further behind in the fast-moving DeFi race.

What Happens Next?

Hoskinson said the proposal is currently under review by the Cardano Foundation, with input from figures like Dan Singleman, CIO of the Hoskinson Family Office. The next step involves coordination with leading DeFi builders in the Cardano ecosystem to gauge interest and plan execution.

Whether the plan will be fully approved—and how it will be carried out—remains to be seen. But one thing is clear: Cardano is preparing to take a major swing at becoming a more competitive blockchain for decentralized finance.

Conclusion: High Risk, High Reward?

Cardano’s $100 million ADA plan is bold, and it signals a shift toward aggressive growth in a space where the project has so far underdelivered. If executed well, it could help Cardano attract more users, developers, and liquidity.

But the risks are real—especially if the market doesn’t react as smoothly as Hoskinson predicts.

Whether this move proves to be a turning point or a misstep, it shows that Cardano is done playing it safe.