#CardanoDebate

Supporters believe this move could strengthen Cardano’s DeFi ecosystem, while opponents argue it’s premature given current market weakness and uncertain timing. The controversy has become a litmus test of how Cardano balances rapid growth initiatives with tokenomics and governance.

A major debate erupted in the Cardano community after a proposal to deploy $100 million (140 M ADA) from the treasury to support stablecoin liquidity was introduced. The proposal, championed by IOHK CEO Charles Hoskinson, aims to bolster DeFi by providing liquidity for USDM on Cardano. However, critics, including influencer @cardano_whale, warned it could trigger sell pressure and be front‑run, potentially driving ADA down from $0.70 to $0.50