I dig deeper about Cardano ICO. I found that at the beginning IOHK got funding about USD63mio through the sales of ADA “Voucher” by Attain Corp. (It’s about 25.9bio ADA)
I think the fund is used to build IOHK, which it is okay. With all roadmap and everything setup accordingly.
My question is what will happend to the Cardano project if the funds is depleted because of the delay of the project? or because there are to many detour from the original roadmap which agreed by the initial investor? (Probably)
Are IOHK will ask for more fund? Sell more ADA? Any Idea?
also, IOHK is a business, and i’m sure any work done for/with Atala, (which recall is ‘Carando Enterprise’) which will cater to business and national needs, will be done at a price.
we have no idea really, as the question makes one leap upon another, their funds are not depleted yet apparently, so any speculation based on that is only more guessing.
It’s a bit off-topic here, but I think people need to recognise that staking will not generate a real income, it will merely compensate for reducing value of holdings.
in the example though, a staked 2.4 billion ADA receiving a meager 3%/yr. reward, would be 72 million ADA more to IOHK’s wallet per year. so if funds were needed to cover company expenses like the post surmised, it would naturally come from these ADA first, imo.
one can rightfully argue the math behind staking to keep up with inflation, sure, if one completely ignores the other side of any ADA transaction. currently, market price appreciation/depreciation can/does easily dwarf any “percent of a percent” “keeping up with ADA inflation over the years” debate, even though valid.
With a rough computation, if all 31,112,484,646 ADA in circulation today were to be staked with an accumulating reward of 3% per year, ignoring transaction fees and stake pool dynamics such as pool limit, it will take at least 12 years to “mine” the remaining 13.8B ADA. Now I don’t have any idea how IOHK wants to space out the distribution of the remaining “unmined” ADA but, for me, even 15 years seem short for us to reach the max supply.
I know, but, what I said is due to delay, and it will cost more right? or already all in? I mean no matter if it is one month or 10 years. It comes with same cost?
My best guess is only part of the transaction fees are distributed as reward, and partially in the future treasury. Unless there are some additions/changes in the staking features voted into the protocol.
On a separate note. I remember Charles saying in one of the 2018 AMAs along the lines that he’ll volunteer working on Cardano if by the time the Emurgo contract ended and he’s not satisfied with the development.
This is not likely how it’ll work… it’s 3% - 5% (whatever they decide) of the remaining amount of ADA in incentive pool. This would mean rewards decrease exponentially over time.
Thanks for clarifying and also providing a reference. I also don’t think the flat out 3% reward for every ADA staked many are saying is likely. It just seem too high. But 3% of the reserved pool + transaction fees looks more realistic. Also shows staking won’t really get someone high profits unless the value of ADA has gone to another planet.
Over time as more people use Cardano, more transaction fees will be available to compensate for the decrease in monetary expansion.
The rewards shouldn’t decrease drastically with the transaction fees covering the reduced reward from the reserve.
Using 5% of the remaining reserve as a reward for every year. 50 years and there’s still at least 1.2B “unmined” ADA
There are plenty of ways to gain ADA to be distributed for stacking once the total
Supply is reached
Example
A team create a project for something, built on cardano ecosystem
One way to get funded is to present a proposal to the cardano ecosystem as a whole ( people or delegate would vote for the treasury fund this team ) let’s imagine yes, it was voted by the majority of people that this project of the team will be good for cardano and the ecosystem
1- what could be done is a tax on this funding process
2- A tax for transaction generated by this project
3- And it may exist the possibility that the treasury owns some shares of this project which would mean recurrent payment to the treasury if this project has success
In my opinion! We do not have to freak out now, as all this space is new, currently we are in infancy stage in crypto … there are tones of ideas that would appear once we have the technology
As some ideas wouldn’t have sense without knowing the protocol how it will behave and also there will be ideas that weren’t considered good ideas and will be excellent ideas once the space grows
My point is, there are so so so much thing to do and still will be a lot to be invented in this space
I m dying by impatience to experiment/ think/ develop in Cardano once Shelley and other features are launched and wait for all the professionals/ engineers that are not in COmputer science to begin towing with this thing
I think amazingly great times of wonder/reasearch/innovation would flourish once we Have the protocol ready for real world
