The proposal for the Cardano stablecoin, numbered #卡尔达诺稳定币提案 , refers to the suggestion made by Cardano founder Charles Hoskinson to convert $100 million worth of ADA in the treasury into the Cardano native-supported stablecoin USDM. This proposal has multiple implications:

Enhancing ecosystem liquidity: Stablecoins are an important foundation for the development of DeFi. The proposal aims to increase the liquidity of stablecoins within the Cardano network, which helps facilitate trading, market-making, and other activities within the ecosystem, increasing the total value locked (TVL) of the network and promoting the growth of decentralized financial services.

Creating economic returns and capital circulation: This proposal includes a self-sustaining economic model, expected to achieve an annualized return of 5%-10%. The returns will be used to purchase ADA from the open market and return it to the treasury, helping to reduce the circulating supply of ADA, expand the treasury size, and provide ongoing support for the ecosystem, forming a virtuous cycle of capital.

Attracting investment institutions: If implemented, the proposal could attract large venture capital firms such as a16z or Pantera Capital to join the Cardano ecosystem, bringing more funding and resources to the ecosystem and facilitating its further growth.