#CardanoDebate Treasury Proposal Sparks Community Uproar

On June 13, 2025, ADA dropped roughly 6%—from ~$0.688 to ~$0.625—as the Cardano community clashed over a controversial proposal: deploying 140 million ADA (~$100M) from the treasury to bolster stablecoin liquidity and perhaps diversify into Bitcoin

Key Flashpoints:

Charles Hoskinson (IOHK):

“We could take $100 million of ADA in the treasury, convert it to a blend of stablecoins… and convert some of it in bitcoin to prime bitcoin DeFi.”

Critics voice concern about market turbulence:

A leading Cardano influencer warned against front-running and heavy sell pressure on stablecoins like ADAV

⚖️ Broader Debate: Governance vs. Utility

This episode is just the latest ripple in the ongoing Cardano vs. Ethereum debate. Its supporters praise Cardano’s robust on‑chain governance (Voltaire, Plomin hard fork), while critics flag slower ecosystem rollout and limited dApp adoption reddit.com+9coinedition.com+9reddit.com+9.

Some community voices argue:

“Marketing Cardano is incredibly hard…requires people to understand too much before they can even see its usefulness.” reddit.com

📈 What’s Next?

AreaWhat to WatchPrice reactionWill ADA stabilize around $0.64 or dip toward $0.62 amid ongoing debates?Governance toolsPlomin hard fork (Jan 29) empowered ADA holders with voting; upcoming votes may impact treasury direction Stablecoin & BTC allocationWill the proposal go through, and what market impact will ADA → BTC/stablecoin swaps bring?Ecosystem momentumADA’s inclusion in Nasdaq crypto indexes recently boosted visibility; partnerships and DeFi activity could shift the narrative .