Cardano

Bitcoin

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
In a recent reaction to an <a href="https://x.com/IOHK_Charles/status/1797762784467529921" rel="noopener noreferrer nofollow">X post</a>, Cardano founder Charles Hoskinson has provided a thought-provoking response to a poll concerning the security sustainability of the Cardano network. The poll's results have sparked a discussion on the economic model that underpins the security of blockchain networks.
<a href="https://x.com/RichardMcCrackn/status/1797696768521695597" rel="noopener noreferrer nofollow">Rick McCracken Digi</a>, a Cardano SPO, launched a poll on X that asks the ADA community what they would rather rely on to sustain the future security of Cardano. Respondents had two major choices.
The first choice was the 2% inflation of ADA rewards, like other blockchains such as Ethereum, Dogecoin and Solana. The second was "20% of the inflation-generated revenue from staking other or partner chains."
<blockquote>
 75 percent of all revenue from mining Bitcoin blocks comes from transaction fees, not block inflation. There are there going to be millions of transactions being processed from using Cardano and those fund the block producers.— Charles Hoskinson (@IOHK_Charles) <a href="https://twitter.com/IOHK_Charles/status/1797762784467529921?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 3, 2024</a>
</blockquote>
Twenty percent of respondents went for the first option, while 35.3% of respondents chose the second option. Meanwhile, a larger percentage of respondents (44.8%) were indecisive and went for the option "show results."
In reaction to the poll, Hoskinson pointed out a compelling statistic from the Bitcoin network, noting that 75% of the revenue generated from mining Bitcoin blocks is derived from transaction fees rather than block inflation.
Looking at <a href="https://u.today/cardano-founder-reveals-road-not-taken-in-building-cardano" rel="noopener noreferrer nofollow">Cardano</a>, the founder's reaction suggests a similar trajectory for the network. With millions of transactions expected to be processed using Cardano, the implication is that these transactions will fund the block producers, ensuring the network's security and sustainability.
This model aligns with the broader shift in the crypto industry toward transaction fee-based revenue models, which are seen as more sustainable in the long term compared to reliance on block rewards.
In response, McCracken, the Cardano community member who initiated the poll, agreed with Hoskinson's point of view, adding that one issue that needed to be addressed was the throughput and number of users required to achieve sustainability.

Cardano Founder Reacts to Cardano Security Sustainability Survey

U_Today

Other articles published on Jun 4, 2024

Pepe’s reign could be over as DOGE investors flock to Raboo

How Theta Network Challenges Streaming Giants Like Netflix and YouTube

XRP ETFs Soon? Whales Gobble Up Shiba Inu and This New GameFi Meme Token

Hong Kong gets ready to shut down all unlicensed crypto exchanges

Dogeverse and Polygon Investors Rush into the MoonBag Top Crypto Presale for Higher ROI along wit...

Dapper Labs Resolves NFT Lawsuit for $4 Million

Join our free newsletter for daily crypto updates!