Cardano Founder Emphasizes Blockchain Sustainability
Charles Hoskinson, the creator of Cardano, underscores the importance of activating decentralization governance, the treasury, and partner chains to bolster blockchain sustainability.
In response to a post on X, Patrick Tobler, CEO and founder of NMKR, initiated a discussion on the necessity of increasing transaction volume on Cardano to enhance network sustainability. This conversation arises as Cardano faces the challenge of staking rewards dropping below 3%.
Tobler suggests that staking pools are integral to the Cardano blockchain and warns of potential trouble if they become unprofitable. He proposes replacing staking rewards with funds from the treasury as a precautionary measure.
Hoskinson, on the other hand, advocates for alternative methods to ensure blockchain sustainability. He highlights partner chains, increased transaction volume, and appreciation of ADA value as essential metrics to restore profitability.
While Tobler stresses the need for more transactions on Cardano, he acknowledges the absence of live partner chains and insufficient transaction fees to cover stake pool rewards. He emphasizes scalability and attracting more users to drive transaction growth, making stake pool operation financially viable long-term.
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Staking on Cardano is critical as it enables ADA holders to participate in network validation and earn rewards.
Hoskinson acknowledges the necessity for increased transactions on Cardano but prioritizes activating decentralization governance, partner chains, and the treasury to address sustainability concerns.
In the meantime, Hoskinson demonstrates his commitment to Cardano’s operational efficiency by upgrading the RATS pool to a functional node.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
