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Debate erupted over Cardano’s 50M ADA stablecoin liquidity proposal. Hoskinson warns direct democracy could cripple decision-making. Community pushes back, citing flaws in past leadership structures A heated debate has broken out inside Cardano’s community over a proposal to allocate 50 million ADA to build stablecoin liquidity and expand the DeFi ecosystem.  Supporters argue the fund could strengthen adoption, but deep disagreements surfaced over who should control treasury spending and how decisions should be made. Treasury Use Triggers Governance Concerns One prominent Cardano supporter, Jane, pushed for cautious, staged allocations, arguing that funding one protocol at a time would prevent dilution and make results measurable. Hey, Charles. Agree with that POV in general, I lean toward benevolent dictatorship :), but for Cardano governance, I have faith. The adults tend to show up in the room for important things, and are also usually the largest bag holders, so I don’t think we’ll have that problem,… — Jane (@Jane14457995) September 21, 2025 They further opposed the idea of forming an unelected advisory board, instead favoring direct community votes on fund allocations. Related: ADA Price Drops on 530M Whale Selling Even as Grayscale ETF Inclusion Goes Live Hoskinson Warns Direct Democracy Could Paralyze Development Cardano founder Charles Hoskinson pushed back strongly on these suggestions, warning that direct democracy over treasury decisions would turn chaotic.  Drawing from past experience, he described Cardano’s earlier budget process as messy, contradictory, and often unworkable.  According to Hoskinson, giving every decision to the community would risk turning DeFi development into a popularity contest, preventing serious projects from participating. If cardano cannot embrace delegate authority, then it will die. We cannot make every decision a gigantic Twitter fight taking months and high drama. Experienced people need to get delegated and revocable authority to do things on behalf of the ecosystem.…

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Filed under: News - @ September 22, 2025 9:29 am