#CardanoDebate

Over the past week, Cardano’s community has been engulfed in a heated debate over a bold new treasury proposal. On June 13, 2025, founder Charles Hoskinson put forward the idea of deploying $100 million worth of ADA (around 140 million ADA) from Cardano’s treasury into stablecoins like USDM/USDA—and even Bitcoin—to spark growth in its underdeveloped DeFi sector.

Hoskinson emphasized that the treasury’s vast holdings (over 1.7 billion ADA, worth more than $1.2 billion) make this move economically feasible. Structured properly—via OTC trades and algorithmic execution (e.g., TWAP)—he argued it would avoid major market impact while boosting stablecoin liquidity, generating non-inflationary revenue, and reducing Cardano’s relative underperformance in the stablecoin-to‑TVL ratio compared to Ethereum and Solana (around 10% vs ~200%).

But not everyone is on board. Critics including influential DRep “Whale” and X user @cardano_whale warn that even a well-executed plan could trigger serious sell pressure, especially in a weak market. They fear front-running and price declines, and many suggest alternative models like minting crypto-backed stablecoins (e.g., ObyUSD) to avoid dumping ADA.

This disagreement surfaced most visibly on June 13, when ADA surged from $0.688 to a low of $0.625 and closed ~6% lower—about $0.64—after the proposal’s announcement.

In short:

• ✅ Hoskinson’s view: strategic conversion from treasury assets can kickstart Cardano DeFi without destabilizing ADA’s price.

• ⚠ Skeptics warn: exposed token fragility could exacerbate selling risk, recommending more cautious minting strategies.

• 📊 Impact so far: 6% dip in ADA price on June 13, reflecting market trepidation.

This debate continues to unfold publicly as Cardano weighs short‑term price risks against long‑term ecosystem growth. Your thoughts on the risks vs. rewards? Would you back the treasury proposal—or prefer a different path? #CardanoDebate