- Cardano’s $225M Budget Proposal Sparks Debate: Cardano submitted a 275 million ADA ($225 million) budget plan to fund ecosystem growth, targeting protocol development and zero-knowledge tech. However, prominent members like Cardano whale are voting against it, warning that the spending could inflate ADA’s supply and potentially fund risky projects.
- Community Divided as Vote Continues: While critics argue the proposal bundles too many initiatives and risks wasteful spending, supporters emphasize that Charles Hoskinson believes the sell pressure will be minimal if spending is spaced out. The vote concludes on June 14, with 92% of DReps yet to cast their ballots.
- ADA’s Price Action Holds Steady: Despite the ongoing debate, ADA’s market sentiment remains positive, with the token pushing toward $0.80 resistance. If reclaimed, targets of $0.90 and $1 could come into play, setting the stage for a potential breakout.
Cardano just dropped a $225 million bombshell – a 275 million ADA budget proposal aimed at pushing its ecosystem to the next level. The plan targets protocol development, zero-knowledge tech, and other major initiatives. But for those funds to get the green light, it’s up to the big players – the DReps, governance members, and the Intersect Civics Committee – to cast their votes.
Community Split Over Massive Budget Proposal
The $225 million proposal didn’t exactly get a warm welcome. Some influential voices are actively opposing it, rallying others to vote against. One of the loudest critics? Cardano whale. He’s not mincing words, calling it a potential waste of funds that could drive up inflation.
“Crypto is about disinflation,” he said. “Bitcoin’s sub 1% now, putting everyone under pressure. 2025 isn’t 2020, and Cardano is still under 2%.”
He argues that the treasury spending spree could dilute ADA’s value and that some initiatives are risky or flat-out scams. He’s also against bundling 39 different initiatives into a single vote – too much at once, he says, and some of it’s just too risky.
“I’ll say it again – this spending path is the single biggest risk to Cardano right now,” he added.
Supporters Push Back – Timing Is Key
Not everyone’s against the plan, though. Some are defending it, brushing off the inflation worries. One member pointed out that Charles Hoskinson himself downplayed concerns, saying that if the spending is spread out over time, the sell pressure would be ‘negligible or modest.’
“Now’s the time to make bigger bets,” the supporter said. “If we don’t act now, we’re going to fall behind.”
Vote Countdown – What’s Next?
The vote ends on June 14. As of now, only 7% of DReps have voted ‘NO,’ with 92% yet to weigh in. For the proposal to pass, it needs more than 50% approval from DReps and backing from constitutional committee members.
Market Unfazed, ADA Holds Strong
Despite the heated debate, ADA’s price action hasn’t flinched. Sentiment’s even climbed into positive territory, according to Santiment data. On the charts, ADA is pushing to break out of its 2025 downtrend. If it can reclaim the $0.80 level – a key resistance zone – the next targets are $0.90 and possibly $1.
For now, all eyes are on the vote. And with such a big budget on the line, the outcome could set the tone for Cardano’s future direction.