The proposal for the Cardano stablecoin by Cardano founder Charles Hoskinson refers to the suggestion to convert $100 million worth of ADA from 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 will help facilitate trading, market making, and other activities within the ecosystem, improve the total value locked (TVL) of the network, and promote the development 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 continuous support for the ecosystem, forming a positive cycle of capital.

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

Enhancing competitiveness: Stablecoins are an important asset class in the blockchain domain, with Ethereum holding a leading position in stablecoin TVL. By strengthening its stablecoin-related layout, Cardano can enhance its competitiveness in the DeFi field, better compete with other public chains, and attract more developers and users.

Exploring the balance between privacy and compliance: Cardano plans to launch a privacy stablecoin that leverages zero-knowledge proofs and other technologies to ensure transaction privacy while meeting regulatory requirements through 'selective disclosure and seasonal freezing systems', providing new ideas for on-chain financial privacy protection and compliant development.