Cardano Community Approves $120M ADA Allocation for DeFi Liquidity Boost
The Cardano community has approved a proposal to allocate $120 million in ADA tokens to AlphaGrowth's PRIME program, aimed at boosting liquidity in the network's decentralized finance (DeFi) ecosystem.
PRIME seeks to increase Cardano's total value locked (TVL) by strategically deploying capital across the ecosystem, with a target of over $200 million. Currently, Cardano's DeFi TVL stands at around $68 million, lagging behind larger rivals such as Ethereum and Solana.
AlphaGrowth revised its original plan to address concerns raised by community members and delegates, introducing safeguards such as staggered fund releases over six months, a 24-month TVL observation period, term limits, and greater diversification among the groups responsible for managing the program.
The proposal gained broader support after AlphaGrowth significantly reduced PRIME's marketing budget following community feedback. The revised budget allocates $648,720, divided into three categories: external content creators (40%), activations and advertising (50%), and tooling (10%).