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Charles Hoskinson has reacted to an idea by Cardano commentator Joe, who suggested that Input Output Global (IOG) should take a $50 million business loan instead of relying on $ADA treasury funds.
Notably, Joe argued that if IOG is confident in its work, traditional financing should be an option. According to him, securing external funding could reduce selling pressure on $ADA and avoid overreliance on community resources.
“Putting Risk on Holders Instead of Devs”
Meanwhile, the suggestion quickly turned into a criticism of how Cardano’s treasury is used. Joe questioned why the project should “constantly” rely on community funds. Specifically, he argued that such an approach shifts risk onto holders while developers continue to earn a steady income.
Another community member, Nicholas, added that other crypto teams have taken loans, repaid them early, and locked up tokens. This view suggests Cardano could follow a similar path if it is confident in its long-term value.
Hoskinson: “This has to be a joke”
Cardano founder Charles Hoskinson responded briefly at first, asking for clarification before later dismissing the idea outright. “This has to be a joke,” he said in response to the suggestion.
His reaction suggests he views the argument as misguided, implying that critics may not fully understand how funding and development structures work.
These comments highlight a divide in the Cardano community, as stakeholders question how development funding impacts $ADA’s market. Joe believes treasury funding shifts risk onto the community while developers “continue to earn salaries.”
Of course it’s easier to raid the treasury, but that places all risk on the community while IOG “earns” nice salaries doing “development”
I think you are very out of touch with users if you can’t see the misalignment or don’t understand the pushback.
— Joe 2.0🎙️ (@joe4deadcat) April 29, 2026
Cardano Treasury Use vs. $ADA Market Pressure
At the center of the debate is Cardano’s treasury system, a pool funded by network fees and governed by $ADA holders. Critics argue that drawing from it can create selling pressure and misalignment between developers and the community.
Supporters, however, see it as a core feature of decentralized governance, allowing the network to fund its own growth.
The debate comes amid a key funding proposal from IOG. Last week, IOG reduced its funding request for 2026 to $46.8 million across nine proposals, down from $97.5 million last year. The move also signals a gradual reduction in dependence on treasury funds.
Scaling Plans and Bitcoin DeFi Push
Notably, the proposals focus heavily on scaling and new use cases. A key upgrade, Leios, aims to boost Cardano’s throughput by up to 65 times, potentially exceeding 1,000 transactions per second.
Another initiative, Pogun, seeks to bring Bitcoin DeFi to Cardano, allowing users to earn yield or borrow against BTC without centralized intermediaries.
IOG says it plans to reduce its funding requests over time as smaller teams take on more development work. By the end of 2026, the company expects an ecosystem of contributors to replace its current dominant role.