#CardanoDebate

CardanoDebate

The #cardanodebate reflects Cardano's pivotal crossroads, centering on treasury management, governance efficacy, technical scaling, and ADA's valuation. Here's a structured analysis based on current developments:

1. Treasury & Stablecoin Liquidity Proposal ($100M Debate)

- Proposal: TapTools team suggested deploying 140M ADA (~$100M) from the treasury to boost stablecoin liquidity (e.g., USDM) and strengthen DeFi.

- Arguments For:

- Charles Hoskinson advocates gradual OTC sales/algorithms (e.g., TWAP) to minimize market impact.

- Aims to solve Cardano's "stablecoin depth deficit" and generate non-inflationary treasury revenue.

- Arguments Against:

- Influencers like @cardano_whale warn of front-running and ADA price suppression, estimating potential sell pressure could drop prices to $0.50.

- Suggests crypto-backed stablecoins (e.g., ObyUSD) as a lower-risk alternative.

- Market Impact: ADA dropped 6% to $0.64 amid the debate, with resistance at $0.68 and support at $0.62.

Table: Key Viewpoints on Treasury Proposal

| Stakeholder | Position | Key Argument |

|------------------|--------------|------------------|

| Charles Hoskinson | Support | OTC/algo sales prevent market disruption |

| @cardano_whale | Opposition | Front-running risks and excessive sell pressure |

| Community | Divided | Long-term DeFi growth vs. short-term price stability |

⚖️ 2. Governance Challenges

- Constitutional Enforcement: A separate ₳50M DeFi proposal was rejected for "metadata mismatches," highlighting rigid constitutional checks.

- SPO Voting Crisis: The Plomin hard fork (Protocol Version 10) stalled as 83.13% of SPOs failed to vote, risking upgrade delays .

- Contrasting Outcomes:

- The smaller ₳1.5M Amaru node upgrade passed with 90% approval, showing consensus on core tech.

- Community debates center on balancing strict governance vs. agility.

⚙️ 3. Technical Developments

- Node Diversity: Amaru (Rust-based node) .

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