Myth busting: Pre-mined ADA is a big issue for Cardano

Some people argue that if a project has pre-mined coins, it must be a scam. The only fair coin distribution possible is the PoW consensus, where the reward goes to whoever participates in the mining. ADA coins were publicly sold between 2015 and 2017. Let’s see if Cardano is a scam just because of the “pre-mined” argument.

TLDR:

  • The term “pre-mining” refers to coins being mined before coins have been made public and/or before the blockchain is launched.
  • Cardano had a fair distribution of pre-mined ADA coins.
  • Bitcoin was not very decentralized and secure when it has been launched, but no one minded. Today, it is not that easy to launch a blockchain, because it has to be secure from the start.
  • Satoshi owns 1,125,150 BTC coins. Can be these coins considered pre-mined?
  • Every team deserves a reward for creating a blockchain network.
  • It is good to know the implications of VC fund participation in the initial coin distribution but it may not be fatal to the project itself.
  • Although the initial sale of ADA coins was centrally organized, this does not mean that this event had an impact on the current decentralization of the Cardano network.
  • Cardano was decentralized on the first day after the switch to PoS consensus.
  • Many people don’t mind Satoshi’s coins, just like no one mind the initial distribution of ADA coins.

This article was prepared by Cardanians with support from Cexplorer.

Read the article: Myth busting: Pre-mined ADA is a big issue for Cardano | Cardano Explorer