Cardano Foundation Boosts Ecosystem with $40.5M Fund
Cardano Foundation is bolstering its ecosystem with a significant fund of around 50 million ADA, approximately $40.5M, to enhance liquidity, stimulate DeFi and RWA development, and bridge the gap with Ethereum and Solana.
The fund, totaling about 50M ADA, is designed to thicken order books and tighten spreads, aiming to improve the on-chain experience and foster wider adoption. It will be distributed with 15% paid monthly to the treasury in Cardano (ADA) and 85% left in the protocols to fuel growth.
Cardano's strategy also involves reducing slippage and stabilizing prices on its flagship pairs, bringing the user experience closer to that of Ethereum and Solana. The fund includes a revenue loop with an estimated return of around 4% for the treasury, contingent on volumes following the depth of liquidity.
To support young projects, the Foundation is pushing a dedicated adoption team and a Venture Hub equipped with $2 million of Cardano by 2026. Additionally, Maxi Doge and Pepenode, both in pre-sale, are aligning with Cardano's vision. Maxi Doge, betting on community energy and rapid execution, aims to convert attention into liquidity and useful functionalities, while Pepenode, claiming a tool-based approach, introduces the first virtual mine-to-earn project.
The Cardano Foundation's 50M ADA fund, RWA agenda, and marketing efforts outline a pragmatic path for Cardano's growth. By improving liquidity, stimulating DeFi and RWA development, and supporting promising projects, Cardano is working to reduce its gap with Ethereum and Solana.
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