#CardanoDebate The Cardano debate revolves around a proposal by Charles Hoskinson to convert $100 million worth of ADA from the treasury into stablecoins and Bitcoin. This move aims to boost DeFi liquidity on the network, addressing the current stablecoin shortage.

*Key Points:*

- *Proposal Details*: The plan involves converting approximately 8% of Cardano's 1.7 billion ADA treasury into stablecoins like USDM and Bitcoin.

- *Goals*: Increase stablecoin liquidity, generate non-inflationary revenue for the treasury, and build up the DeFi economy.

- *Potential Risks*: Price suppression due to large ADA sale, governance disputes, and yield underperformance.

*Community Reaction:*

- *Supporters*: View the proposal as necessary for Cardano to compete with other blockchains like Ethereum and Solana.

- *Critics*: Express concerns about potential price impact, centralization risks, and unproven yields.

*Alternative Solutions:*

- *Minting ADA-backed Synthetic Stablecoins*: Some community members suggest this approach to bolster DeFi liquidity without sparking heavy sell pressure.