Anatoly Yakovenko, co-founder of Solana, has sharply criticized a new initiative proposed by Charles Hoskinson, the founder of Cardano. Yakovenko described the idea of converting part of ADA’s treasury into Bitcoin as "so dumb."
In a post on X, Yakovenko expressed his belief that altcoin projects should refrain from holding Bitcoin on behalf of their users. Instead, he advocates for treasuries to prioritize maintaining an operational runway through short-term U.S. Treasury bills.
“This is so dumb,” Yakovenko stated. “Projects should keep 18–36 months of post-kill list runway in short-term T-bills, 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?”
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
Cardano Sparks Debate With Proposal to Turn ADA Treasury Into Bitcoin Yield Engine
Yakovenko’s remarks were made in response to a video released on June 13 by Hoskinson, who proposed reallocating $100 million worth of ADA from Cardano’s treasury into Bitcoin and stablecoins.
@IOHK_Charles proposed converting $100 million in ADA from Cardano’s treasury into stablecoins and Bitcoin. #ada #cardano https://t.co/WRtEpiTO4q
— Finance Newso.com (@Finance Newso) June 13, 2025
In the video, Hoskinson outlined that this conversion could enhance the liquidity of stablecoins and contribute to the growth of Cardano’s decentralized finance (DeFi) ecosystem. He noted that Cardano currently has a significantly lower stablecoin-to-total value locked (TVL) ratio compared to Ethereum and Solana.
By holding Bitcoin and stablecoins, Hoskinson believes Cardano could generate yield, reinvest in ADA, and gradually build a more robust treasury. The long-term vision includes creating a yield that could support the repurchase of ADA, thereby bolstering the protocol and its DeFi ecosystem.
“I do believe that it will not materially impact Cardano by doing a conversion of 5–10% of the treasury,” Hoskinson stated. “And in doing this, we will create yield, and this yield… can be used to purchase ADA and over time replenish the treasury.”
Hoskinson described the overarching plan as an initiative to grow Cardano’s treasury into a “billion-dollar-plus” pool of stablecoins and Bitcoin, drawing a parallel to the operations of sovereign wealth funds.
Yakovenko’s response underscores a broader skepticism within various sectors of the crypto community regarding projects managing Bitcoin on behalf of their users. He believes that individual holders should maintain their own Bitcoin exposure rather than relying on protocol-level holdings.
The emerging debate has elicited diverse reactions from the wider crypto community. One user on X, known as “y00thereum,” ridiculed the proposal, stating, “Remember how this clown was always saying that his ‘shtcoin’ Cardano is better than Bitcoin? Now he wants to dump $1.2B in ADA for BTC and stables. Hahaha, you can’t make this sht up.”
Remember how dis clown was always sayin that his sh*tcoin Cardano is better than Bitcoin? now he wants to dump $1.2B $ADA for $BTC and stables. hahaha you can’t make this sh*t up https://t.co/cquNc91QCk pic.twitter.com/GpezrdLrNg
— y00thereum (@y00ethereum) June 16, 2025
Conversely, some users defended Hoskinson’s proposal. A user named TJ Coosh argued that the conversion of Bitcoin from the treasury would inject necessary liquidity into Cardano’s DeFi pools, offering Bitcoin holders a smoother experience in that ecosystem.
As altcoin projects explore strategies to fortify their ecosystems amid fluctuating market conditions, the ongoing discussion around the merits of holding Bitcoin versus maintaining T-bills is generating considerable interest.
Yakovenko’s perspective on the issue is evidently firm. However, whether Cardano’s strategy will prove effective remains a matter of future observation.
Polkadot Joins Treasury Diversification Trend as Cardano Hits Staking Milestone
Cardano’s $100 million Bitcoin treasury proposition is not an isolated incident; it is indicative of a broader trend among major blockchains experimenting with multi-asset treasury strategies.
Polkadot is also considering a similar approach. Recently, a member of the Polkadot community suggested selling 500,000 DOT (worth approximately $1.95 million) to establish a Bitcoin reserve using a dollar-cost averaging strategy. Proponents argue that Bitcoin could help stabilize treasuries as DOT’s price continues to face challenges in 2025.
@Polkadot members divided as a proposal to convert 500,000 DOT into Bitcoin for a strategic hedge sparks debate. #Polkadot #Bitcoin https://t.co/KBdEelN2nW
— Finance Newso.com (@Finance Newso) June 13, 2025
Nevertheless, some question the appropriateness of this timing, especially given Bitcoin’s current all-time highs exceeding $106,000.
Meanwhile, Cardano maintains a strong network foundation, with the ADA token experiencing a 3% increase over the past day. Current metrics indicate that staking participation has surpassed 1.3 million addresses, reinforcing its position among the most actively staked blockchain networks.
JUST IN: Cardano $ADA has surpassed 1.3 million staking addresses, highlighting its status as one of the world’s most actively staked blockchain networks. pic.twitter.com/HDUnJ8mmRH
— TapTools (@TapTools) June 16, 2025
As discussions about treasury management intensify, an increasing number of protocols are contemplating formal fund oversight mechanisms, including elected boards and cross-chain deployments. This trend signals a significant evolution in how on-chain capital is managed within the increasingly sophisticated DeFi ecosystem.
The post Solana’s Yakovenko Slams Cardano’s $100M Bitcoin Treasury Move as “Dumb”—Should Altcoins Bet on BTC? appeared first on Finance Newso.
