The funds movement of Cardano has sparked controversy, with 25 million dollars flowing into the Midnight Network.

Cardano has reallocated approximately 70 million ADA (worth about 25.7 million USD) from its treasury to fund the development of Midnight. Midnight is an independent, privacy-focused Layer-1 network. This move has sparked strong opposition from some ADA holders, who believe that these funds should be used to strengthen Cardano's core ecosystem, especially given that its DeFi applications are lagging behind other emerging chains. Analysts and critics like Aixbit question whether ADA can directly gain value and point out that infrastructure funded by the treasury is more beneficial for networks that have their own tokens and development roadmaps. Supporters argue that this is Cardano's strategic expansion into privacy application scenarios, but they still worry about the execution of this move and the clarity of the incentive mechanisms.