#CardanoDebate

ADA drops 6% as the Cardano community debates a $100 million liquidity proposal in stablecoins.

Cardano's ADA token fell more than 6% while Charles Hoskinson defended a proposal to deploy 140 million ADA from the treasury to boost stablecoin liquidity.

Cardano's ADA token decreased by 6.01% to $0.6412 as the market reacted to both macro volatility and a heated governance debate over a $100 million treasury allocation proposal aimed at strengthening the DeFi ecosystem.

On Wednesday, the TapTools team asked their followers on X what they think about the idea of deploying 140 million ADA (around $100 million) to provide liquidity to stablecoins like USDM and help boost Cardano's growing decentralized finance sector.

Not everyone agrees. Influential account @cardano_whale argued that introducing 140 million ADA as selling pressure under current market conditions would be detrimental. They acknowledged the potential long-term benefit for DeFi but warned that governance proposals are often pushed forward by traders, meaning any public plan to sell ADA at $0.70 could end up with that offer selling at $0.50. Instead, they favored the minting of cryptocurrency-backed stablecoins like ObyUSD to avoid direct selling pressure.