Yesterday, the ETCDEV announced that they were closing down due to funding issues. The sustained crypto bear run has taken a toll on their finances. But Ethereum Classic (ETC) is not the only crypto that is facing difficulties. Many other teams are under pressure since prices for most altcoins are down by over 90%. One altcoin that stands out is Cardano (ADA). Though it is still a work in progress, Cardano (ADA) is assured of funding stability until the IOHK team completes its work in 2020. In one of his AMA’s in August, Charles Hoskinson was asked about the issue of funding. To this, he answered,
“We are very smart with the bitcoin that we got. We divested it and are fully funded until 2020.”
This means that Cardano’s project funding is in no way affected by the crypto market bear of 2018. As such, Cardano investors can rest easy knowing that Charles and his team are fully focused on the tech, and don’t have to deal with any inconveniences that may arise out of lack of funding.
The best part is that even after the roadmap is complete and the IOHK contract comes to an end, Cardano is well positioned to sustain all future technical developments with ease. That’s because, as per the Cardano Monetary Policy, it will have a treasury that will be funded with Cardano (ADA) transaction fees. Below is a more detailed explanation of the Cardano treasury as presented in the Cardano monetary policy.
Cardano will have a treasury going forward. This treasury will be endowed via some portion (yet to be defined), of newly-minted Ada and transaction fees. The treasury will be governed by Ada holders.
MINIMAL FEE (CURRENT CALCULATION)
The minimal fee = 0.155381 ADA + 0.000043946 (ADA/Byte) x size-of-transaction.
Note: Fee calculations and incentives are areas that are currently being researched and their development is in progress.
1 ADA = 1,000,000 Lovelaces
1 Lovelace = 1/1,000,000 Ada
Ada has six decimal places.
1.000000 = 1 ADA
0.000001 = 1 Lovelace
This treasury makes Cardano (ADA) a self-sustaining eco-system that will always remain functional in spite of market cycles that will always recur, with bull and bear cycles.
As such, Cardano investors can judge this project fully on the basis of its potential for adoption. On this front, Cardano (ADA) is well positioned for growth too. That’s because Cardano is a solution to most of the problems affecting most blockchain platforms today.
For instance, Cardano takes care of the inefficiencies of Proof-of-Work. It solves this through Ouroboros, a revolutionary Proof-of-Stake algorithm that gives Cardano the security of Bitcoin (BTC) while at the same time eliminating the need for huge energy requirements that come with POW mining. Cardano also solves the problem of scalability, since it is designed for scalability from the ground up. This places it in a good position for growth in the long-run. This is a high-value project that is set for growth in coming years.
Charles once said that he is building Cardano to be a trillion dollar crypto. With its technical capabilities, there is no reason why Cardano can’t hit this valuation in the next decade.