Charles Hoskinson<\/span><\/a>, Cardano\u2019s founder, believes that activating decentralization governance, the treasury, and partner chains are key catalysts to driving blockchain sustainability.<\/span><\/p>\n The Cardano founder shared these key catalysts for blockchain sustainability in response to an earlier X post. Patrick Tobler, a crypto enthusiast and the CEO and founder of NMKR, started the conversation by stating that it is necessary to increase the number of transactions on Cardano to enhance the sustainability of the network.\u00a0<\/span><\/p>\n <\/p>\n This comes as Cardano is faced with a recent challenge of its staking rewards dropping below 3%. Precisely, data from the Staking Rewards site confirms that the current reward rate for <\/span>Cardano<\/span><\/a> (ADA) staking is 2.97%.<\/span><\/p>\n He suggested that staking pools are the current pillar of the Cardano blockchain, citing that when they are no longer profitable, \u201cwe\u2019re in trouble\u201d. Furthermore, Tobler believes that the \u201ctrouble\u201d season is approaching rather quickly.\u00a0<\/span><\/p>\n He advised that staking rewards coming from the treasury through transaction fees be replaced as a precautionary measure.<\/span><\/p>\n <\/p>\n On one hand, Hoskinson strongly believes there are other ways to achieve the sustainability of the blockchain. First, he highlighted partner chains, increased transaction volume, and ADA value appreciation as core metrics that will rebalance profitability.\u00a0<\/span><\/p>\n It’s axiomatic. Of course, all cryptocurrencies need more transactions. That’s the purpose of a blockchain. The most vital things we can do are get decentralization governance running, the treasury operational, and partnerchains running<\/p>\n \u2014 Charles Hoskinson (@IOHK_Charles) March 31, 2024<\/a><\/p>\n<\/blockquote>\n <\/p>\n Tobler seemed to disagree with Hoskinson, pointing out that the latter cannot reasonably argue against the analysis that Cardano needs more transactions.<\/span><\/p>\n For context, Tobler acknowledged that no partner chain is currently live and the amount of transaction fees is still not sufficient to cover the stake pool rewards. He once again emphasized the fact that Cardano needs scalability as well as more users who will initiate more transactions.\u00a0<\/span><\/p>\n \u201cIt\u2019s the only way to make running a Stake Pool financially viable long-term,\u201d Tobler added.<\/span><\/p>\n <\/p>\n It is worth noting that staking on the Cardano blockchain is crucial seeing that it provides a platform for ADA holders to engage in network validation while earning rewards.<\/span><\/p>\n Ultimately, Hoskinson agreed that all digital assets require more transactions as that is the purpose of a blockchain. However, he reiterated that getting decentralization governance and partner chains running and ensuring that the treasury is operational are what Cardano needs.<\/span><\/p>\n Pending when these factors will go live, Hoskinson is deploying more skin in the operational efficiency of Cardano with the <\/span>upgrade of its RATS pool<\/span><\/a> to a functional node.<\/span><\/p>\n <\/p>\n \u2713 Share:<\/p>\n <\/a><\/p>\n <\/a>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n <!– <\/p>\n <\/p>\n <\/a><\/p><\/div>\n<\/p><\/div>\n <\/p>\n <\/a><\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n –><\/p>\n –><\/p>\n Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter<\/a>, Linkedin<\/a> <\/p><\/div>\n<\/p><\/div>\n The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n <!– <\/p>\nImproving Blockchain Scalability and Transaction Volume<\/strong><\/h2>\n
Cardano Founder Hammers on Need for Decentralization<\/strong><\/h2>\n
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