$ADA Cardano's ADA token decreased by 6.01% to $0.6412 as the market reacted to both macro volatility and the governance debate regarding the allocation of $100 million from the Treasury aimed at enhancing the DeFi ecosystem.

On Wednesday, the TapTools team asked their followers on X about the idea of deploying 140 million ADA (approximately $100 million) to provide liquidity for stablecoins like USDM and to support the development of Cardano's decentralized finance sector.

Not everyone is in favor. Influential account @cardano_whale argued that adding another 140 million ADA to selling pressure in the current market conditions would be detrimental. He acknowledged the long-term benefits of DeFi but warned that governance proposals are often front-run by traders, meaning any public plan to sell ADA at $0.70 could end up selling at $0.50. Instead, he advocates for the issuance of cryptocurrency-backed stablecoins like ObyUSD to avoid direct selling pressure.

Cardano founder Charles Hoskinson strongly rebutted, asserting that concerns about selling pressure are a "misleading narrative." In his view, the Treasury could gradually convert 140 million ADA off-exchange or through algorithmic execution strategies like Time-Weighted Average Price (TWAP) orders to avoid market disruption. He emphasized that the lack of Cardano stablecoins is hampering the ecosystem, and this initiative could not only address that gap but also create sustainable, non-inflationary revenue for the Treasury.