Sovereign Wealth Fund

Every now and then CH drops a must watch video that sets the tone and direction at a key point for the ecosystem. This is one of those videos.

We are at a key inflection point for the ecosystem as its transitions from central control via the 3 founding entities to a fully decentralised governance model. This time present risks and opportunities, but we believe that Charles is correct when he says that stable coin liquidity is one of the key barriers slowing development, innovation and wider adoption.

It is likely we will collectively need to provide this liquidity from part of the existing treasury that has been built up. But the counterpoint is that if we can collectively provide it, the ecosystem as a whole will benefit and profits will flow back into Cardano.

Further, if we accept that the model of Cardano as a decentralised, autonomous, digital nation state then this represents the next logical step on that journey. After all every nation state holds central reserves in the form of its own currency and other assets which it manages to the benefit of the economy and citizens. The development of suitably decentralised treasury operations for Cardano is an important capability that will need to be built out in the coming months and years but has the potential to dramatically increase growth overall.