$ADA The Cardano debate revolves around a proposed $100 million treasury allocation to boost DeFi liquidity. Cardano's ADA token dropped 6.01% to $0.6412 amid this heated governance debate. The proposal involves converting 140 million ADA to stablecoins, which some community members see as a bold step to give Cardano DeFi a stable foundation. However, others view it as premature, citing concerns over sell pressure and market volatility.
*Key Points of Contention:*
- *Sell Pressure Concerns*: @cardano_whale argues that introducing 140 million ADA in sell pressure could be damaging, potentially selling at $0.50 instead of $0.70.
- *Gradual Conversion*: Charles Hoskinson counters that the treasury could convert ADA gradually over-the-counter or through algorithmic execution strategies to avoid market disruption ¹ ².
The community remains divided, testing how Cardano balances long-term growth with near-term token economics ³.