Cardano has 1.23B ADA coins in its project treasury. Every 5 days, 0.3% is taken from the reserve (currently about 9.32B) together with collected fees and both are used for the epoch reward. From this amount, 20% is taken and put into the treasury. That’s roughly 5.5M ADA every epoch. As the reserve declines, so do the contributions to the treasury. It is expected that in the future the income from the reserve will be gradually replaced by the income from fees. Currently, roughly 20k ADA goes into the treasury each epoch from the fees collected. Cardano should be an ecosystem that will be able to finance itself. This way it can maintain its independence from VC funds and can remain in the hands of the community. ADA in the treasury belongs to the community, i.e. all Cardano stakeholders. Each ADA holder can decide what projects the treasury will fund.
The quality of decentralization is currently judged only by the number of pools, delegators, and validators. In the near future, we will be looking more and more at the quality of decentralization at the project management level, as people will be more interested in finding solutions to problems (like the security budget problem). People don’t yet realize how important the project treasury is for decentralizing the blockchain and that the team needs to be in the role of employee, not a ruler.
This article was prepared by Cardanians with support from Cexplorer.
Read the article: https://cexplorer.io/article/there-is-1-23b-ada-in-cardano-s-treasury