#CardanoDebate – Will the ADA treasury become a gateway for liquidity or a trap for volatility?**

The ADA coin experienced a sharp decline of ~6% after a split within the Cardano community over the proposal to use 100–140 million ADA from the treasury to support the liquidity of stablecoins within the system 🌐 .

🔍 **Divergent viewpoints:**

Supporters, led by Charles Hoskinson, believe that this funding is necessary to enhance DeFi and the treasury strategy without direct negative impact, using OTC trades and tools like TWAP .

Opponents warn of potential selling pressure as a result of the public disclosure of the amount, which could lead to an unjustified drop in price, and prefer the issuance of cryptographically-backed stablecoins without offloading ADA .