The stablecoin proposal of 11,776,397,457 refers to Charles Hoskinson, the founder of Cardano, proposing to convert $100 million worth of ADA in the treasury into the Cardano natively supported stablecoin USDM. This proposal has multiple implications:

Enhancing ecosystem liquidity: Stablecoins are an important foundation for the development of DeFi. The proposal aims to improve the liquidity of stablecoins within the Cardano network, facilitating trading, market-making, and other activities within the ecosystem, increasing the total value locked (TVL) of the network, and promoting the growth of decentralized financial services.

Creating economic returns and capital circulation: The proposal includes a self-sustaining economic model, expected to achieve an annual return of 5%-10%. The returns will be used to purchase ADA from the open market and return it to the treasury, helping to reduce the circulating supply of ADA, expand the treasury size, provide ongoing support for the ecosystem, and create a positive cycle of capital.

Attracting investment institutions: If the proposal is implemented, it may attract large venture capital institutions such as a16z or Pantera Capital to join the Cardano ecosystem, bringing more funds and resources to the ecosystem and promoting its further growth and expansion.

Enhancing competitiveness: Stablecoins are an important asset class in the blockchain space, with Ethereum occupying a leading position in stablecoin TVL. By enhancing its stablecoin-related layout, Cardano can improve its competitiveness in the DeFi space, better compete with other public chains, and attract more developers and users.

Exploring the balance between privacy and compliance: Cardano plans to launch a privacy stablecoin that leverages technologies such as zero-knowledge proofs, ensuring transaction privacy while meeting regulatory requirements through a “selective disclosure and seasonal freeze system,” providing new ideas for on-chain financial privacy protection and compliant development.