70 million ADA reallocation sparks controversy, Cardano's ecological strategy shift displeases holders.

[Coin World] Cardano recently made a big move - it transferred 70 million ADA from its treasury, equivalent to about 25.7 million US dollars, all to support the development of Midnight. What is Midnight? An independently operated Layer-1 network that focuses on privacy features.

As soon as this decision was announced, the community erupted. Many ADA holders reacted strongly, feeling that this money should be used on Cardano's own core ecosystem. After all, the fact before us is that Cardano's DeFi applications do not have the same market presence as those of other new chains.

The criticism is quite loud. Analysts like Aixbit have raised a question: Can ADA benefit directly from this? They pointed out that using the treasury to fund infrastructure is more cost-effective for networks that already have their own tokens and clear development paths. In other words, this money invested in Midnight might make Midnight's own token the biggest winner.

Supporters stand from another perspective - this is Cardano's strategic layout towards privacy application scenarios. But even among supportive voices, there are concerns. They worry whether the execution details will keep up and if the logic of the incentive mechanism is clear enough. After all, when real money is invested, whether the returns can be realized is still an unknown.