#CardanoDebate
ADA falls 6% as the Cardano community debates $100 million liquidity proposal in stablecoins.
Cardano's ADA token fell over 6% while Charles Hoskinson defended a proposal to deploy 140 million ADA from the treasury to boost stablecoin liquidity.
Cardano's ADA token decreased 6.01% to $0.6412 as the market reacted to both macro volatility and a heated governance debate over a $100 million treasury allocation proposal aimed at strengthening the DeFi ecosystem.
On Wednesday, the TapTools team asked their followers on X what they think about the idea of deploying 140 million ADA (around $100 million) to provide liquidity to stablecoins like USDM and help boost Cardano's growing decentralized finance sector.
Not everyone agrees. Influential account @cardano_whale argued that introducing 140 million ADA as selling pressure under current market conditions would be detrimental. They acknowledged the potential long-term benefit for DeFi but warned that governance proposals are often driven by traders, meaning any public plan to sell ADA at $0.70 could result in that supply being sold at $0.50. Instead, they favored the minting of cryptocurrency-backed stablecoins like ObyUSD to avoid direct selling pressure.
Cardano founder Charles Hoskinson vigorously responded, labeling concerns about selling pressure as a “false narrative.” In his view, the treasury could gradually convert the 140 million ADA out of the market or use algorithmic execution strategies like TWAP (time-weighted average price) orders to avoid market disruption. He emphasized that the lack of depth in stablecoins on Cardano is hindering the ecosystem,
