#CardanoDebate Token ADA of Cardano decreased by 6.01% to $0.6412 as the market reacted to both macroeconomic volatility and the governance debate regarding the allocation of $100 million from the Treasury to enhance 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 support the development of Cardano's decentralized finance sector.

Not everyone is in favor. Influential account @cardano_whale argued that adding 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 run ahead by traders, meaning any public plan to sell ADA at $0.70 could end up selling at $0.50. Instead, he advocated for the issuance of cryptocurrency-backed stablecoins like ObyUSD to avoid direct selling pressure.

Cardano founder Charles Hoskinson strongly countered, stating 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's stablecoins is stifling the ecosystem, and this initiative could not only address that gap but also create a sustainable, non-inflationary source of income for the Treasury.