#CardanoDebate
Cardano's ADA Falls 6% Amid Debate Over $100M Treasury Proposal
Cardano's ADA token dropped 6.01% to $0.6412 as investors reacted to both market-wide uncertainty and an internal debate within the Cardano community. The decline followed a proposal suggesting the use of 140 million ADA (valued at around $100 million) from the Cardano treasury to support stablecoin liquidity and grow the platform’s decentralized finance (DeFi) ecosystem.
The proposal, shared on social media by the TapTools team, aims to strengthen the network by backing stablecoins like USDM. However, the idea has sparked mixed reactions.
Some community members support the plan as a long-term investment in Cardano's DeFi growth. Others, including the well-known account @cardano_whale, raised concerns about timing and potential market impact. Critics argue that releasing such a large amount of ADA could increase sell pressure and lower prices, especially if traders act in advance of the proposed transactions. There is concern that ADA could fall to $0.50 if the proposal leads to large-scale selling.
This discussion represents a key test for Cardano’s on-chain governance system. The community must weigh the short-term risks to ADA’s price against the potential long-term benefits of a stronger DeFi ecosystem.
