All centralized fees to be burnt (currently upward of 91,754 ADA). Fun Fact

fun

#1

Just ran across this as I was looking into transaction fees for Smart Contract’s, thought it was interesting:

  1. According to https://adatracker.com/charts there have been 91,754 ADA spent on transaction fees, currently in epoch 43.

  2. And According to https://cardanodocs.com/cardano/transaction-fees/
    “TRANSACTION FEES DISTRIBUTION
    All transaction fees of a given epoch are collected in a virtual pool, and the idea is to then redistribute the money from that pool amongst people who were elected slot leaders by the PoS-algorithm during that epoch and who created blocks.
    At this stage of Cardano SL, where all blocks are created by nodes operated by IOHK and our partners, fees are already collected (to prevent DDoS attacks), but they will not be distributed and instead will be burnt.
    As soon as Cardano SL enters its next, fully decentralized stage, fees will be distributed as described above.”

That is a lot of burnt ADA!
Too bad they could not have been collected for the future treasury, would have been a nice start for funding it.
Today it really is just a minimal amount compared to the total supply, but it caught my eye and I had to share for fun.


Proof of stake rewards question
#2

Nice find! Hopefully more ADA will be burned before we enter into POSing.


#3

Why do you even care about that? The amount of ADA that will be burned is microscopic… the 91.754 ADA has already been priced in since It is off the market and forever will be… and we are talking about a merely 0.0003792% (That is how much theoretically your ADA holdings will increase due to this burn)

If you had 100.000.000$ in ADA, thats 375$, and with the full potential market cap reduce that to 180$ USD

@haskell-plus True… For the principle of fun at least :smiley: As you said… Realisticly we are probably going to need 50-300 Million dollars in 2020 for the next funding depending on the work and what needs to be done, if any serious longer term contract has to be made.


#4

I think that 50-300M $ fund is easily achievable if the block reward reaches 1000ADA per block, that means ~400M ADA goes to the treasury per year.


#5

Yeah for the first many years Its going to be inflated since we are going to mint a lot of new ADA, so it wont rely on fees alone. This will give the fund a head-start since it will be loaded on the front end, and Charles planned it this way - which is why they left so much unminted ADA. He learned a little trick of the government, pay by inflation, no one will complain/notice lol.

I mean in the future we definitely need to scale it way down if it has to work, but we would prob also be working with a lot higher ADA price. We have to keep fees low for a competitive network. It is a fine balance of how much should be put into future investments to improve/build upon the network.


#6

Yup.
And if you ask me a contract will absolutely need to be made to continue the work IOHK has started, science is continually building on itself and who knows what new quantum computing will come out in the next year and a half, and if it is IOHK awarded the contract they sure as heck cannot be expected to do it for free.

We do need a treasury fund by 2020 that has a surplus so that it has the funds for 5 years of development.

“TREASURY
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.”

I think the holders should probably start weighing in on the portions that should be allotted to the treasury, I heard of some numbers that were quite high IMO and I was kind of taken back, then I think CH mentioned 20% in Scotland (of annual minted coins) and I think that is a number I could live with to be alloted from the minting but not from transactions until minting is reduced and Cardano has more transactions on the platform.
I am no expert and do not have the resources the partners have on the economics of distribution, but it would be nice if through staking transaction rewards it could actually encourage adoption through promotion of use by the holders.
If in the first year the amount of minted coins equals say…9% of supply and 20% is alloted to treasury and the price remains the same that would come out to near 179M-180M (correct my math if it’s wrong please) so the treasury would not need any of the transaction fees to be added to it with those numbers unless we need more to have the next 5 years covered by a developing team, my guess is the price of ADA rises as our progress rolls out, so the USD amount of the treasury would be greater than 180M, once smart contracts begin hitting the platform transactions are going to rise and demand with it, and demand always does some crazy things to the free market.


#7

Classic Charles. Lets get the presses rolling.

cardanotres

Its very smart filling up the coffers, when you are the one who will be hired and paid with that coffer :smiley:


#8

As long as the press is printing an alternative to the Red Cross I am all in!!

Bwahahaha! Corner a market if you can!!!


#9

Did you make this image?:slight_smile:


#10

This image reminds me of Bernankecoin! LOL! Old times!
Just the image… nothing else.


#11

nooooo, of course not, there would probably be several copyright infringements in that process. :wink: So I couldnt admit to it even if I did.


#12

I am imaging the treasury will be like ICHANN. And there operating budget is 132 Million a year!!!
https://www.icann.org/en/system/files/files/proposed-opplan-budget-fy17-05mar16-en.pdf