A significant debate has erupted within the Cardano community regarding a proposal to convert 140 million ADA, valued at approximately $100 million, from the network’s treasury into USDM, a Cardano-native stablecoin. This move aims to bolster stablecoin liquidity in Cardano’s DeFi ecosystem and drive broader growth. Cardano founder Charles Hoskinson proposed this initiative during a recent AMA, suggesting it could be carried out through OTC deals or TWAP strategies, minimizing price disruptions. However, the proposal has stirred controversy. While proponents see it as a key step to boost stablecoin liquidity in Cardano’s DeFi space, critics like Decentralized Representative (DRep) known as Whale expressed concerns. They argue that injecting such a substantial amount of ADA into the market could trigger sell pressure, potentially exacerbating existing price instability. Hoskinson countered these criticisms by highlighting the low TVL ratio for Cardano stablecoins compared to Ethereum and Solana. He asserts that the move is necessary to address this issue, believing that strong community support will drive market acceptance. Yet, others remain skeptical, emphasizing the fragility of sentiment in the crypto markets and pointing out that even relatively small sell pressures can cause significant price fluctuations. As such, they advocate for alternative approaches like minting collateral-backed stablecoins as a means to achieve liquidity without directly impacting ADA’s price. The debate highlights a wider challenge within the crypto space: how to facilitate growth without jeopardizing the asset itself. Hoskinson’s proposal raises crucial questions about the best way to manage treasury funds, mitigate risk, and determine who has decision-making authority in a decentralized network. Whether the community embraces this initiative or explores alternative approaches, Cardano’s next move will significantly impact its DeFi ambitions for 2025.