What/How/why has Cardano chosen the total amount of coins as 40,000,000,000 vs more or less?
I suspect future adaptation and price stability.
I believe the max cap of 45 B was arbitrary, but when you breakdown ADA into the smaller unit of Lovelace to 6 decimal places it becomes more relatable to Bitcoin which goes to 8 decimal places in Satoshi.
1 ADA = 1,000,000 Lovelaces
1 Lovelace = 1/1,000,000 Ada
Ada has six decimal places.
1.000000 = 1 Ada
0.000001 = 1 Lovelace
Ok, slightly confused about Lovelace? Considering how thoughtful the team in Cardano appear to be, I question the arbitrary nature of choice for number of available coins?
Here’s the actual explanation from the Cardano SL Documentation…
In all crypto, there is basically a base unit. A satoshi in bitcoin is 100,000,000 satoshis in a bitcoin. Ethereum is even crazier. Ada has a Lovelace. In this way, bitcoin has 2.1e15 satoshis and Ada has 4.5e16. It is more but less than Ethereum which has 9.613167e25 Wei. In any case, supply is a pie. It doesn’t matter how you slice it, it is still just one pie.
Cardano - each ADA is really worth $429.13 RIGHT NOW... here's why
I like pie. So I like to know how big the pie is. Trying to understand the size of all the different pies in crypto land is proving tricky. I am still struggling with the “arbitrary “ choice Cardano states for the 45B slices of pie. Is it arbitrary because in crypto the rules are different for how supply effects value? Can you expand on your comparison to Ethereum and Cardano pie being more but really less?
I can’t remember who came up with 45bn. Smaller denominations are common in Asia and Ripple was very popular when the project started in 2015. The 45bn was somehow based on the max pre-sale cap of 64mn USD. I am sure if they had launched from US, then they would have made it 45mn Ada with 1000 lovelaces to an Ada. Note, this is the same as listing prices in kAda, 1000 Ada = 1kAda and 1 kAda is 1000 * 1 Ada market price.
Will there be also an Lovelaces coin or just like satoshi?
Not unless someone starts a Lovelace coin on the network once we have meta-token support. But lovelace is just the denomination 0.000001
I think it has to do with price stability on the long run.
i find the name lovelaces somehow very Strange…
Haha my wife said the same thing
I love sharing this. Have a read:
Ada Lovelace is a little rough sounding and saying. However, I think that it has a good image associated with it.
That is very clever and slowly starts to reveal the character of this “cryptic” group of designers. Time to start reading between the lines a bit more maybe?
I am starting to see that the number of coins creating stability maybe the idea. Look at what is going on with Bitcoin. That kind of volatility can’t work for transactions when they can change so radically before they are processed?
Did you see Tron coin suply?
Tron double its market cap overnight… Crazy
Still trying to work this out, so are you saying Ethereum actually has more total coin available than Cardano?