If you were Charles, how would you spend your ADA holdings for the benefit of the Cardano Ecosystem?

I was just wondering that Charles will receive quite some ADA mid of 2019, which will give him another way of influencing Cardano´s future.

He is the mastermind behind Cardano and have shown tremendous effort & commitment so far to make it happen and keeps investing his life in it. So there is no question or doubt he deserves every small Lovelace of his future holdings and would he want to spend it on Mojitos & Cigars on a 50 foot yacht on the Caribbean that´s absolutely fine and somewhere pretty understandable.

BUT following Charles closely, you get to understand his personality & ambition, which is not primary to become a crypto billionaire, but to make a difference to the World and really make Cardano (his prescious & yet fragile child) the standard decentralized financial protocol (like TCP) of the next decades that would also be a lifevest for the 3 billion unbanked people to improve their life. I believe he loves challenges, being in the forefront of innovation, pushing his limits and would never retire to a luxury boredom. This is also where I see Charles to be a different leader compared to all the other crypto project CEOs out there, he has selfless interest in his project not driven by greed, splurge and manages to stay humble & true to his true values.

So my question is, if you would be Charles, where would you invest / donate your ADA holdings to maximize / boost the adoption of Cardano and increase it´s potential to succeed the vision?

Perhaps build some missing capability not on the roadmap for the Ecosystem? Such as develop a 50 USD secure mobile device, which holds crypto safe? (Sirin Labs future phone looks promising, but around 500-1000 EUR it´s out of reach for the unbanked people.)

Or maybe have a separate venture and build a microlending platform on top of Cadano for small businesses in Africa and move part of his holdings to it´s treasury to provide initial liquidity?

It´s not about speculating on his holdings, but rather to recognize this hidden & uncertain opportunity and what a significant impact the smart use (no matter whether non-profit, or profit) of such capital might have on the Ecosystem once it´s ready & mature to accept such a large & smart investment / donation.

I am really curious how this will go down … there are endless possibilities.

I would not count the chicken before they hatch.

Yes, U are right, it might be a bit early for this conversation :slight_smile: On the other side maybe it´s important to speculate on this as I think all the other speculations which believe Charles would dump his ADAs on the market once they are unlocked mid 2019 are absolutely ridiculous.

This should be recognized as a hidden, less obvious, but significant potential for the Cardano Ecosystem, it´s good to be aware of and keep in mind.

In a World of ego, selfishness, greed & commericalism this presumption might sound very insane and illogical, but in this particular context it feels natural and aligned with the vision of the venture, the dream of the Founder.

A crypto ecosytem should organically grow, but it requires certain maturity & size it may autonomously & confidently do so. Holding the hand and providing support for the very first baby steps is essential and Emurgo, Cardano Foundation is doing it till some extent. Nevertheless they have their limitations as corporate entities following strict rules, policies & agenda on how their assets & resources might be utilized… as a private individual your options are much much wider. Let´s see how that will work out for Charles.

I think he should stake the protocol. Security is the #1 priority of Cardano as it moves into a more decentralized state. Let Emurgo find projects to fund and continue to decentralize the network. I think a better question might be “What kind of projects would you like to see backed by Emurgo in the Cardano ecosystem?”

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a treadmill.


I think he could have done that already easily if he wanted to, so that’s not the reason why he is in the space.
I see him as an open-minded libertarian, who has the luxury to work on anything he would like to, and he has chosen to work on solving the biggest issues of humanity (Governance, Economics etc.).

But, do not forget that we are all humans and therefore fallible.
I cannot recall (getting old) which Caesar, statesman or similar (I recall Cicero) had a PA (personal assistant), who had only one job/duty, to whisper in his boss’ ear during his speeches to the Plebs: “You’re human! You’re not a God! You’re fallible!” etc. Cos, he knew that he would’ve started to believe in his superiority after a while.

To change the systems is hard, very hard, as the current ones were built on the human nature. As a very-very oversimplified explanation is that’s like the economics (demand-supply).
If there would not be any demand (want, desire etc.) for something then it would not be built/exist.
So, not the systems are wrong, they just evolved based on the human nature and if we would be different, then the current systems would not evolve and exist at all.

Unfortunately, that demand can be manipulated by fooling the ppl (make desire and wants of groups). Governments, leaders (who usually became dictators), ideologies, religions, scammers, ourselves (self-justification etc.) etc. are very good at it.
So, how do we want to solve anything, when we’re still the same as we were 10 thousand years ago (evolution is very slow)?
We’re all running on the same billion years old base code, which has only two purposes: survive and reproduction (not really two, would say one, but it’s a bit more complicated), and everything else is evolved based on these fundamental forces.
As a conclusion, everybody can be easily fooled (using different tools) whether he/she accepts it or not, that’s irrelevant.

Firstly. it requires at least, that the merchanders or producers accept ADA or a token on Cardano platform as currency.
Not impossible, but I think it should be started locally, check the Worgl Experiment or any local/complementary currency as an example.

It also means that this currency fulfils the unit of account (how much things worth. Market will do this anyway) and the medium of exchange (buy and sell things) functions of the money.
At the moment ADA does not really fulfil any of those two’s (someone would argue, as you can exchange ADA on exchanges, but that’s a different story).

But, these last two functions are contradicting (in our current economic systems), means driven by different forces.

  • Medium of exhange, means it should be a currency (money in curculation), and the velocity of it reflects the economy where it’s used (faster is better).
  • Store of value has an incentive to have more and more of it (human nature and time preference), instead of using it (negative impact on the economy, but this is a very oversimplified explanation)

Secondly, almost all of, our current economics are based on interest (compound interest, interest-inflation), means no real work to gain more.
Yes, I know, it can be explained as taking the risk.
These interest based sytems are expecting exponential growth, which cannot be sustainable.

Therefore, we need cycles (crashes), in which the banks (and the richest) are always bailed out,
by the rest’s (the Poors’) money.
It means that the distribution of the money, therefore the moneypower, is always converging from the Poors to the Riches, over and over again, which creates more centralisation, more corruption etc.
There is no exception, and if you disagree, then you seem to do not understand the fundamentals of economics.

If you lend ADA or any token based on Cardano, and you want to keep the current systems somehow, you would expect interest on it, and in addition, the cryptocurrencies, at this stage at least,
are deflationary (means getting more valuable by the time), that means the borrower will suffer more when he/she borrows.

So, if we want to solve this, we need to find a way to incentive the lending system, the lenders and the borrowers simulteanously.
But, how?

TBH, I do not know, really as I, and also all of us, cannot understand very complex systems.

In our current payment systems (Visa as an example), usually, the receiver (payee) pays the fee, while in Cardano, the payer.
How can we incentive the payer to use it as currency, especially when the CCs are deflationary?

So, how can we incentive the parties to use any deflationary money for trading?
As I, and the merchandiser/producer either, have an incentive to keep instead of using them.

So, a lot of questions need to be answered and empirically tested, before choosing anything.
Or just leave these questions be answered by the free/open markets, which are on the top of our wrong current systems.

IDK, really.

Hi Pal,

You have an excellent share of thoughts on this topic. Thanks for your valuable opinion!

One thing I believe will happen is that at some point when real commercial Use Cases get deployed on Cardano, where you need a token as one side of the value exchange we will have a stable coin (STADA) being introduced.

STADA will be linked to something like the CPI basket value (can not be an inflating currency like the USD) and some sort of semi-automated decentralized governance system will manage it’s stability having also the issuance / supply influenced. I believe constantly feeding real world data from a large set of external, trusted Oracles and at the same time analyzing big data from commercial transactions on the Cardano blockchain will parametrize the stable coin “management algorithm”.

Such a coin is inevitable due to the deflationary nature of ADA. Eventually ADA would always stay as the “gas” for the Cardano infrastructure and stay deflationary for a very very long time, which wouldn’t be an issue in this scenario.

I believe there are quite a few confidential projects at IOHK and one of them is definitely a stable coin concept, which is not linked to any single particular fiat currency or have any sort of centralized control.

But having the side-chains capability of Cardano on the roadmap to cover interoperability, we may have all sorts of Tokens and other cryptocurrencies participating in value exchanges over the Cardano Blockchain so initially other less mature / reliable / sustainable stable coins might take this role, until a “second generation” stable coin is being released.

For many Use Cases (such as land registry), where there is no speculation on the future value of ADA, but the value transfer is immediate & final I believe ADA will do well.

You could always exchange your beginning of the month fiat salary to ADA and then keep on paying with your ADA Debit card.

But you are right this ecosystem is highly complex, which is why I would love to see some leading economist professors in Cardano Foundation carrying out non-technology researches (those are IOHK territory).

One more comment here on the Stable Coin topic.

I believe Charles has mentioned this many times himself that ADA is the fuel for the protocol, but not necessarily meant to be the value token itself for all the Use Cases.

Yep, that make sense.

To be a bit more precise.
Yes, ADA will have more functions, as you said a gas for running smart contract on CL, currency, a tool for governance (voting) or for providing security (staking) and probably some other, what I don’t know atm.

But, I would separate these functions to some different tokens instead. E.g. currency would only be money in circulation and would not have any other purpose (no store of value function), which would only fulfil one and only one function the medium of exchange, means it should not have any time preference incentives. But, that would require some taxation of NOT using it (not buying/selling).
The CC-s are not capable of that, cos there are economic incentives to not use them (transaction fees and deflationary features). So, this currency could be backed, to gain/have saim value, by some store of value money e.g. ADA, which would not have that taxation if it’s not used (for buying/selling). There are a lot of ideas out there, but Idk which one will evolve, but if Cardano wants to survive then they need to consider any idea even they sound stupid at first.

Hire more intelligent people who can makes this coin more value than $0.1

You think it will still be that price a year from now?

Of course not even the air we breath more value than now

There is no direct correlation between hiring more intelligent people and the value of an asset. Furthermore, invest with your brains. Not your wallet.

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If I were Charles I would HODL the majority of it and not touch it for the benefit of the Cardano Ecosystem. I would also buy a Porsche 918 with a small fraction.

But the reason I say hold it for the benefit of the system is that as the price rises, then so will demand. The more Charles holds the more influence he has. Then the leaders of nations will turn to Charles for advice.

I imaging a few years from now the U.S. Congress is going to request Charles to participate in a Congressional hearing, at which point they will ask “Mr. Hoskinson, what is this blockchain you have built and how can we control it?” … as Charles grins while flipping a mic



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So…this is a discussion on how a man should spend his wealth to benefit a community? Somehow this seems offensive to me. You don’t get to discuss what someone should do with their wealth and resources…regardless of their personality, their goals, objectives or anything else you want to throw on top of it. This isn’t communism


I believe you didn’t understand the discussion topic … read it again, perhaps you can read between the lines.

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I skimmed through it the first time, now I’ve read the whole thing. My comment stands. As I understand there will be a treasury system, that should cover all your points. I don’t see where Charles Hoskinsons holdings come into play. You seem sincere and passionate about the project so here’s my question to you; instead of speculating on how Charles Hoskinson could or should spend his :ada: holdings, tell me how you will spend your :ada: to improve the community?
Pretty offensive speculation isn’t it?


You really can’t read between the lines …

The only thing what I am wondering about is what is your motives & value in this particular discussion?

I think Twitter would fit you better, there is lot of toxicity there you can freely enjoy.

My last hint to you is to watch this perhaps you get the idea:

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