#CardanoDebate

On Wednesday, the TapTools team asked their fans on X what they think about the idea of investing 140 million ADA (about 100 million dollars) to provide liquidity to stablecoins such as USDM and support the development of the Cardano decentralized finance sector.

Not everyone supports this idea. Influential user @cardano_whale argued that introducing 140 million ADA in selling pressure under current market conditions would be harmful. He acknowledged that DeFi may bring potential long-term benefits, but warned that governance proposals are usually preempted by traders, which means that any public plan to sell ADA at $0.70 could end up selling that supply at $0.50. Instead, he advocated for minting cryptocurrency-based stablecoins, such as ObyUSD, to avoid direct selling pressure.

Cardano founder Charles Hoskinson strongly opposed this, calling concerns about selling pressure a "false narrative." In his opinion, the treasury could gradually convert 140 million ADA over-the-counter or through algorithmic execution strategies, such as time-weighted average price (TWAP) orders, to avoid market disruptions. He emphasized that the lack of depth in Cardano stablecoins holds back the ecosystem, and this initiative could not only fill that gap but also generate a sustainable, non-inflationary income for the treasury.

The community remains divided. While some see it as a bold step to finally give Cardano DeFi a stable foundation, others view this plan as premature, especially considering the current market weakness and ADA's inability to maintain above $0.68. The debate has become a litmus test for how Cardano balances long-term growth with short-term token economics.