Sun, April 21

Charles Hoskinson Points Critical Drivers for Cardano’s Sustainability

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  • Hoskinson provided important factors that would ensure the blockchain’s long-term viability.
  • Patrick Tobler first brought up the need of increasing the network’s transaction volume.

Activating decentralized governance, the treasury, and partner chains are crucial catalysts for achieving blockchain sustainability, according to Cardano’s founder Charles Hoskinson.

In response to a previous article on X, the founder of Cardano provided these important factors that would ensure the blockchain’s long-term viability. In order to make Cardano more resilient, crypto enthusiast and NMKR CEO and creator Patrick Tobler first brought up the need of increasing the network’s transaction volume.

Requirement of Scalability

Not long ago, Cardano had a problem when its staking payouts fell below 3%. Cardano (ADA) staking now yields a return rate of 2.97%, according to statistics from the Staking Rewards site.

He implied that staking pools are fundamental to the Cardano blockchain at the moment, saying that “we’re in trouble” if they stop making money. In addition, Tobler thinks the “trouble” season is coming up soon. He suggested, as a safety net, swapping out the treasury’s staking incentives with transaction fees.

Hoskinson, on the one hand, is certain that the blockchain can be made sustainable in other ways. He started by outlining the key criteria that would rebalance profitability, which are partner chains, increasing transaction volume, and ADA value appreciation.

Tobler seemed to disagree with Hoskinson, who he said could not credibly dispute the study stating that Cardano requires more transactions. To put it in perspective, Tobler admitted that both the quantity of transaction fees and the number of active partner chains are insufficient to pay the stake pool incentives. He restated the requirement of scalability and the need for more users to begin more transactions on Cardano.

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