#CardanoDebate

Treasury Budget Proposal: Charles Hoskinson, the founder of IOG, proposed using 140 million ADA (~100 million USD) from the treasury to increase the liquidity of stablecoins (such as USDM, USDA, and possibly BTC) with the aim of supporting decentralized finance (DeFi). This sparked a division in the community.

Reactions:

Supporters see this as a necessary step to enhance market depth and the long-term growth of the ecosystem.

#Opponents, including the account @cardano_whale, expressed concerns about significant selling pressure that could weaken the price and preferred the option of minting asset-backed stablecoins as an alternative to avoid direct impact on ADA.

This dispute affected the price of ADA, which dropped by about 6% (from ~0.688$ to ~0.625$) before stabilizing at ~0.64$ .