Cardano Founder Charles Hoskinson Threatens Retirement Over Treasury Reform, Proposes ADA Sovereign Wealth Fund to Rival Bitcoin
Cardano founder Charles Hoskinson has escalated his push for a major overhaul of the Cardano (ADA) treasury, warning during a June 16 livestream that he will retire if his reform proposal is rejected. The plan aims to transform Cardano’s current $1.1 billion (1.7 billion ADA) passive treasury into an actively managed, multi-asset sovereign wealth fund. Hoskinson proposes divesting up to 100 million ADA to invest in Bitcoin (BTC), stablecoins, and real-world assets, with profits being reinvested into the Cardano ecosystem. The entire process would be managed by a Wyoming-based DAO and subject to external audits. Hoskinson criticized the community for indecision and emphasized the urgent need for efficient governance to compete with leading blockchain networks. The proposal, which seeks to accelerate Cardano’s innovation and adoption, is expected to be voted on at the Rare Evo conference in August. This marks a pivotal moment for ADA, with potential impacts on its price, governance, and DeFi position. Following the announcement, ADA was trading at $0.63. The proposed reforms and Hoskinson’s ultimatum could drive short-term volatility and affect investor sentiment, signaling Cardano’s strategic intent to challenge Bitcoin’s market dominance.
Neutral
Hoskinson’s ultimatum and the proposed treasury overhaul introduce both significant opportunity and uncertainty for ADA. In the short term, the announcement could lead to price volatility due to increased investor speculation and anxiety regarding leadership stability and the direction of Cardano’s governance. The strategic direction to diversify treasury assets and support ecosystem growth has bullish long-term potential, positioning Cardano to better compete with Bitcoin and attract DeFi developers. However, the outcome depends on community consensus and the Rare Evo vote in August. Until there is clarity on implementation and acceptance, the market response is likely to remain mixed, justifying a neutral stance for immediate price outlook.