#CardanoDebate Cardano's community is buzzing about a proposed $100 million treasury allocation to boost DeFi liquidity, sparking intense debate. The plan, which involves deploying 140 million ADA tokens, aims to provide stability to Cardano's DeFi ecosystem. However, opinions are divided.¹ ²

*Arguments For and Against the Proposal:*

- *Proponents:* See it as a bold step to give Cardano DeFi a stable foundation, potentially driving long-term growth.

- *Critics:* View the plan as premature, citing current market weakness and ADA's struggle to hold above $0.68. They warn that introducing 140 million ADA in sell pressure could be damaging, especially if traders front-run the proposal.

Some, like influential account @cardano_whale, suggest alternative approaches, such as minting crypto-backed stablecoins like ObyUSD. The debate highlights the challenges Cardano faces in balancing long-term growth with near-term token economics.

*Current Market Impact:*

- ADA token price dropped 6.01% to $0.6412 amid the debate and macro volatility.

- Technical analysis shows ADA fell from $0.688 to $0.625 before recovering to $0.641.³

The #CardanoDebate is a platform where developers, investors, academics, and skeptics discuss Cardano's ecosystem, exploring topics like its science-first approach, staking mechanics, smart contracts, governance, and adoption.⁴#Tradersleague #BinanceHODLerHOME