Hi guys, probably sometime in 2021 the initial development contract with IOHK will be finalized and a new proposal will be made. I’m not sure about values, but I imagine that a new 5 year development contract for the project would cost something between $60-100M (dollars).
My question is if there would be funds available for this. I know that it depends on the ADA’s price at the moment, but I haven’t found out objectively how many ADAs the foundation has to do this kind of hiring, what is the projection of collecting ADAs for the treasury at each epoch (I believe it’s 20%), and how is the dynamics of decisions about where to allocate these funds (I’ve seen discussions here in the forum about using dcfund to stimulate internal projects, but I confess that I don’t understand how this management is being done, what dcfund is and what it has to do with a possible renewal with IOHK.
The Lisk project (for example) makes periodic updates like this: Financial Update for November 2020 showing clearly the project funds and allocation destinations. I would like to see something similar being shown by the Cardano Foundation.
Could someone help me to clarify these doubts? Thanks in advance
This may not be a full answer to your question, but the goal of IOG (IOHK) has always been to eventually bring on more developers and embrace the open source community. Moving forward, the community will vote on proposals for improvement that can be brought by IOG or any other developers. It’s not going be $100 Million going to one company, it’s going be more like 1 million going to a hundred companies, to build various different applications and improvements. (but I don’t know what will happen, it will be up to the community vote, but I do know that Charles has said he want’s to continue to work on Cardano for the rest of his life. (but like every other developer, he will require the communities support if he asks for funding)
My memory might be off on this, but I think Charles mentioned something like $80 million per year will be going to the treasury for development. (but this depends on the market price of ada, which is a little unpredictable)
I think you’re talking about the far future. Cardano now still needs a focused team, and Charles had already said that he will propose a new development plan (a kind of IOHK renew). Maybe 5 years later we will be able to get to the point where IOHK is only one of many teams working for Cardano
I think having IOG continue development will be the best thing for Cardano, however I think opening up the development to others will exponentially increase the speed of development, while retaining the safe and secure fundamentals created by IOHK. (or maybe you are thinking of the core protocol only, while I am thinking about development in terms of thousands of different dapps, use cases, defi, supply chain, health, AI, etc. etc. Sorry I don’t have accurate numbers about the funding, but my understanding is that their initial research around long term sustainability and the treasury model, if done correctly will mean we don’t have to worry about funding. But you raise a valid question, and I hope someone else can shine some more light on this topic)
So Cardano Foundation has about 230M ADAs. Can anyone confirm that? Is there any additional funds? How much of that amount will be destined for development (I mean a possible new IOHK contract)?
