The proposal to convert 1 billion USD worth of ADA in the treasury is referred to as the #卡尔达诺稳定币提案 currency proposal, which was put forward by Charles Hoskinson, the founder of Cardano. 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, facilitating trading, market-making, and other activities within the ecosystem, improving the total value locked (TVL) of the network, and promoting the development of decentralized financial services.

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

Enhancing competitiveness: Stablecoins are the blockchain field...