Cardano Deploys $225M War Chest—Will ADA Investors Reap the Rewards or Face Another Crypto Mirage?

Cardano’s treasury just greenlit a $225M budget injection—its biggest play yet to boost ecosystem development. But will it move the needle for ADA’s price, or vanish into the blockchain abyss like so many ’game-changing’ crypto initiatives?

Breaking down the hype: The funds target dApp development, scaling solutions, and—of course—more research. Because what’s Cardano without another peer-reviewed paper?

Market reaction? ADA’s price chart currently looks like a flatline EKG. Traders seem to be adopting a ’show me the users’ stance rather than celebrating the theoretical spend.

Here’s the cynical take: Another nine-figure crypto budget gets paraded before retail investors... while insiders check their vesting schedules. Will this actually onboard real-world users, or just fund another round of developer grants and conference swag?

Community divided on $225M plan

But the proposal sparked heated community debate, with some key members publicly voting against it and rallying others to do the same. 

One of the renowned stakeholders, Cardano whale, voted down the plan, citing a potential risk of wasteful expenditure and elevated inflation. He argued, 

“Crypto is about disinflation, Bitcoin is sub 1% now (putting everyone under pressure, 2025 is not 2020) while Cardano is sub 2%.”

Per Cardano whale, the treasury spending will increase, and the supply could dilute the token’s value.

He added that some initiatives (39) shouldn’t be bundled together for a vote to make work easier, as some may be outright ‘scams’ and ‘risky.’

“I will once again reiterate that this spending path we are on is the single biggest risk to Cardano currently.”

However, some defended the MOVE and downplayed inflation concerns. In fact, one member said, 

“Charles Hoskinson has said sell pressure should be negligible or modest if dispersed over time responsibly. He also feels we’ll fall behind if we don’t make some bigger bets, specifically at this time.” 

Source: Cardano Governance 

The voting will end on the 14th of June. At the time of writing, only 7% of DReps voted ‘NO’, with 92% yet to cast their vote.  For the proposal to pass, over 50% of DReps must support it alongside approval by constitutional committee members. 

Interestingly, market sentiment on ADA appeared unaffected by the ongoing debate. Overall weighted sentiment surged higher into the positive territory. 

Source: Santiment

On the price front, ADA’s May recovery was on the verge of breaking the 2025 downtrend (descending channel).

The $0.80 level was also the early 2024 peak. Bulls could push forward to $0.9 or $1 if the level is reclaimed as support. 

Source: ADA/USDT, TradingView