#CardanoDebate

**Proposal by Charles Hoskinson and its Impact on ADA**

**Proposal**: Charles Hoskinson proposes to use 140M ADA (~$100M USD) from the treasury to buy BTC and native stablecoins (USDM, USDA, IUSD) to boost Cardano's DeFi ecosystem. ADA fell by 6%-7.58% after the announcement, trading at ~$0.63-$0.64.

**Opinion**:

- **Pros**:

- Increases liquidity in DeFi (stablecoin/TVL ratio from 9.65% to 30-40%).

- Generates yields of 5-10% ($5-$10M annually) for ADA buybacks.

- Positions Cardano as a leader in "Bitcoin DeFi" and attracts institutional capital.

- Gradual execution (OTC, TWAP) minimizes price impact.

- **Cons**:

- Short-term selling pressure and volatility in a bearish market.

- Division in the community and governance risks.

- Dependence on stablecoin adoption and the success of DeFi.

- Competition with blockchains like Ethereum and Solana.

**Long-Term Impact**:

- **Optimistic**: A higher TVL and demand for ADA could drive the price to $1.50-$3.00 by 2030 (optimistic: $10).

- **Pessimistic**: Lack of adoption or selling pressure could bring the price down to $0.30-$0.50.

- **Neutral**: Price at $0.60-$0.80 in the short term, with moderate growth if execution is effective.

**Recommendation**: Monitor technical levels ($0.67 support, $0.73 resistance) and governance developments (Rare Evo). Use DCA, consider staking, and store in secure wallets (Daedalus, Ledger). High risk of volatility.