The Cardano debate revolves around several key topics, including:
- *Transaction Per Second (TPS) Claims*: A crypto analyst, Marty Party, sparked a debate on social media by comparing Solana's and Cardano's TPS. Solana's TPS surged to an impressive 40,000 with the launch of a new validator client, while Cardano's current TPS stands at approximately 1.3. Marty Party criticized Cardano for allegedly misleading investors with unrealistic TPS claims.
- *Stablecoin Situation*: Charles Hoskinson, Cardano's co-founder, admitted that the stablecoin situation is "killing Cardano." He proposed converting 140 million ADA to USDM, a fiat-backed stablecoin, to boost DeFi liquidity and generate non-inflationary revenue for the treasury. However, critics warn that this plan could trigger further ADA price drops amid current market weakness.
- *Treasury Diversification*: Hoskinson also plans to diversify $100 million worth of ADA into Bitcoin and Cardano-based stablecoins to strengthen DeFi and liquidity landscape. The proposal aims to address the network's limited stablecoin supply and foster long-term adoption.
- *Community and Governance*: The proposal has exposed contrasting views between Cardano's founding leadership and its foundation's current executive team. While Hoskinson favors aggressive treasury deployment for growth, the Cardano Foundation's CEO emphasizes regulatory compliance and enterprise-grade solutions.
Some of the arguments for and from large ADA conversion
- Market volatility and uncertainty
- Alternative solutions, such as minting a crypto-backed stablecoin, may be more suitable
The debate highlights the ongoing competition between blockchain platforms like Solana and Cardano, each with unique strengths and community support. Cardano's systematic approach to development and stability appeals to some, while Solana's high TPS makes it attractive for those prioritizing speed and scalability ³.
