- Cardano Whale warns the 97M ADA proposal could strain treasury and inflate ADA, risking ecosystem funding flexibility.
- Sebastian Guillemot’s $460K ADA loan-backed purchase shows strong developer belief amid governance funding tensions.
- ADA trades at $0.5877 with 6.32% daily gain, but market remains volatile after a 13% weekly dip and shrinking volume.
A recent funding proposal by Input Output (IO) for Cardano’s 2025 development has led to fresh debates within the community. The proposed treasury allocation, aiming to fund core development work, was submitted for Delegated Representative (DRep) and community appraisal.
The plan aligns closely with Intersect’s 2025 product roadmap and draws from longstanding Cardano contributors. However, the scale of the requested funding has raised concern among key stakeholders, including Cardano Whale, a notable X account in the ecosystem.
Inflation Warning Over Treasury Spending
An X account, “Cardano Whale” expressed unease over the proposed 97 million ADA allocation, stating it nearly matches what they envisioned as the yearly cap. According to them, such a large commitment may limit funding for other important ecosystem projects throughout the year. In a response to IO’s proposal post, Cardano Whale stated,
97m ADA is closer to what I had in mind as entire treasury spend for a year.
They emphasized the need for Input Output Global (IOG) but warned against overspending, which could restrict overall ecosystem growth. Continuing the thread, another user, Seanavocado, acknowledged the bloated appearance of the proposal but supported the move, citing urgency in network progress.
Cardano Whale countered, stressing that excessive treasury spending effectively reintroduces inflation. They warned that overspending could risk ADA falling in value, referencing tokens like DOT and COSMOS as cautionary examples.
Sebastian Guillemot Makes $460K ADA Investment
While debates continued over treasury usage, prominent developer Sebastian Guillemot made a major ADA acquisition. Guillemot purchased 686,567 ADA valued at $460,000 using a loan worth $400,000, with $60,000 in interest.
The transaction was the first significant purchase following ADA’s listing on Bitfinex. Guillemot clarified that this was a loan-backed investment and not a donation. He aims to use the funds for technical upgrades and treasury-linked governance support.
According to the developer, this move shows strong confidence in Cardano’s ecosystem, especially during a time when many blockchains face liquidity and funding pressure.
Market Outlook Shows Ongoing Volatility
As discussions around funding intensified, ADA had mixed market performance. At press time, Cardano was trading at $0.5877, up 6.32% in 24 hours. However, it is still down by 13.06% over the past week.
Cardano’s market cap is at $20.72 billion, rising by 6.28%. Meanwhile, 24-hour trading volume dropped 10.56% to $1.44 billion. The circulating supply is 35.27 billion ADA, near its max limit of 45 billion.
