Cardano plans to invest millions of ADA to compete with other cryptocurrency networks.

Source: Criptonoticias Original Title: Cardano plans to invest millions of ADA to compete with other cryptocurrency networks Original Link: https://www.criptonoticias.com/tecnologia/cardano-millones-ada-competir-otras-redes-criptomonedas/ Intersect, the organization coordinating the governance of the Cardano ecosystem, presented on November 27 an initiative to fund various integrations within the network.

The proposal, called Budget for Critical Integrations, requests to withdraw 70 million ADA (USD 30 million at the current price) from the on-chain treasury, the common fund of the Cardano community that resides entirely on the network and can only be mobilized through voting.

The aim is to fund a new operational fund aimed at deploying infrastructures that do not currently exist in Cardano and that would be necessary to expand its economic and technical capacity.

The initiative, which adds to other similar ones already approved, aims to promote different narratives of the ecosystem. For example, stablecoins and decentralized finance (DeFi), real world assets (RWA), and different applications through the integration of providers operating at an institutional level.

A fund to boost stablecoins on Cardano

According to the proposal, the funding will be allocated for the following:

Establish a strategic integration fund to incorporate critical infrastructure, including top-tier stablecoins, institutional custody of digital assets, on-chain analytics platforms, cross-chain bridges, and price oracle networks.

These elements allow a network to operate with external capital, stable liquidity, and tools for developers, institutions, and users.

For example, increasing the presence of “top-tier” stablecoins would lead financial applications to have a stable and predictable means of payment. However, they did not specify what a “top-tier” stablecoin is.

To achieve that increase in stablecoins, Cardano needs another infrastructure first: data oracles, bridges connecting with other chains and custody providers adapted to institutional standards.

The text of the initiative adds regarding that infrastructure:

Establishes the foundational layer necessary to incorporate top-tier stablecoins and unlock exponential growth in DeFi transaction volume.

In Cardano, as in any network, the trading volume depends on having reliable price data, interoperable liquidity and tools that provide applications with ease of use.

On the other hand, the fund promoted by Intersect also promises to accelerate the development of sectors such as (RWA) assets and DePin (decentralized physical infrastructure networks).

Both require external data and verifiable processes that today Cardano cannot fully offer, as noted.

What problems does Cardano aim to solve with this fund?

The proposal indicates that the platform “lacks several critical integrations necessary for large-scale economic activity and to attract external liquidity.”

In addition to stablecoins, the following deficiencies were highlighted:

• Custody and institutional wallets: companies need tools to securely custody funds and manage assets. Wallets with support for multiple chains and advanced features allow new users to enter without technical barriers.

• On-chain analysis platforms: provide real-time data that allows for the study of liquidity, risks, or activity patterns. They are indispensable for auditors, compliance teams, developers, and institutions.

• Bridges between chains: connect Cardano with other blockchains. Without them, the ecosystem remains isolated and cannot access external capital and users.

• Price Oracles: feed applications with verified external data. Although Cardano has native providers, according to the proposal, it still “lacks a recognized institutional price oracle provider”.

The absence of all these elements directly impacts financial activity.

The proposal suggests that if Cardano does not speed up the incorporation of these infrastructures, it runs the risk of falling behind in the competition to attract applications, liquidity, and institutional-scale integrations.

Voting on the Cardano Fund

Currently, the votes of the DReps ( representatives delegated by ADA holders ) lean in favor, while the pool operators (SPO) have just begun to participate. The votes from the Constitutional Committee (CC) are also pending, which completes the tricameral model that directs the governance of Cardano.

The voting started on November 27 and will end on December 30.

The proposal will only advance if the ongoing vote ( that closes on December 30 ) receives a favorable outcome. That will be the decisive step to authorize the withdrawal of 70 million ADA from the treasury.

Finally, this vote takes place within a complex framework of Cardano governance, given that on November 8, one of the seven members of the Constitutional Committee announced his voluntary departure from that role, which was realized on November 25.