$ADA Cardano Debate Today: $100M Stablecoin Liquidity Proposal Divides Community

Cardano is in the spotlight today as a new treasury proposal stirs intense discussion within the community. The plan suggests deploying 140 million ADA—worth nearly $100 million—to boost stablecoin liquidity on the network. Supporters believe this move is essential to strengthening Cardano’s DeFi ecosystem, allowing deeper market integration and broader utility for stablecoins like USDM.

However, the proposal has drawn sharp criticism. Some argue that such a large deployment risks immediate selling pressure on ADA, especially if traders try to front-run the treasury's actions. Critics suggest exploring other mechanisms, such as minting crypto-backed stablecoins, to avoid direct token liquidations.