For starters:
Roughly:
- You send some coins.
- You pay ~0.17 ADA to do so (for now)
- Slot leader puts your transaction into a block, among with let’s say 1000 total transactions
- Slot-leader pays himself a bonus out of nowhere, for example, 500 ADA
- Additionally, he adds all the transaction fees to this bonus, so = 500 + (1000 * 0.17) ADA = 670 ADA - this is the
total block reward - Now slot-leader gets two addresses - one is predefined (treasury) and one is any address he wants (usually his own)
- He sends 75% to himself, and 25% to the treasury
- So treasury gets (670 * 25%) = 167.5 ADA, and he gets 502.5 ADA
- He sends this block to the network and everyone is like: “ok”
- If he sends a block where there’s no 25% going to the specific address - then everyone else is going like
“wtf?” and they just ignore the block - All of this happens every 20 seconds
[Months go by]
- Now there’s a lot of coins in the treasury
- I’m here like: “I’d like myself some of those dolla bills, yo”
- I go to the “Daedalus version 4” or somenthn and open “Send a proposal” tab
- I write: “I’m gonna make Cardano great again! So great… you wouldn’t believe. There’s gonna be so much performing. And I’m gonna need… 100’000 ADA for it.”
- This proposal goes to the blockchain
- Other people open their “Daedalus version 4” or sometnhn and open “Review proposals” tab
- They look at my proposal and think: “this guy makes sense” and click “All fricking for!”
- Once there’s like a 75% of active stake voted for my proposal - treasury automatically releases 100K ADA onto my address, and I go like “that worked?
” - And then I go and implement stuff… or not.