The Cardano Stablecoin Proposal of #卡尔达诺稳定币提案 refers to the proposal 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 several implications:

Enhancing ecosystem liquidity: Stablecoins are a crucial foundation for the development of DeFi, and the proposal aims to increase the liquidity of stablecoins within the Cardano network, facilitating trading, market making, and other activities within the ecosystem, increasing the total value locked (TVL) of the network, and promoting the development of decentralized finance.

Creating economic returns and capital circulation: The proposal includes a self-sustaining economic model, expected to achieve an annual 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, provide ongoing support for the ecosystem, and create a virtuous cycle of capital.

Attracting investment institutions: If the proposal is implemented, it may attract large venture capital firms such as a16z or Pantera Capital to join the Cardano ecosystem, bringing more funds and resources to the ecosystem and promoting its further growth and development.