Cardano (ADA) טוקנומיקה

The Cardano token, ADA, is the native asset of the Cardano blockchain, serving as the unit of account, security mechanism, and medium for transaction fees. Its token economics are designed around a Proof-of-Stake (PoS) consensus mechanism called Ouroboros, prioritizing long-term sustainability, decentralization, and community governance.

Issuance Mechanism

Cardano operates with a fixed maximum supply and an inflationary reward system derived from a reserve pool.

• Maximum Supply: The total maximum supply of ADA is 45 billion tokens.
• Genesis Distribution: Approximately 31.2 billion ADA were minted during the Genesis Block Distribution.
• Inflationary Rewards: The remaining 13.8 billion ADA were initially allocated to a reserve pool to be minted as block rewards.
• Inflation Rate: New ADA is introduced into circulation through an inflationary mechanism where 0.30% of the remaining ADA in the reserve is pooled each five-day epoch to fund staking rewards and the treasury. This mechanism ensures a continuous, albeit diminishing, supply of rewards to incentivize network participation.
• Burn Mechanism: There is currently no token burn or buyback mechanism featured or planned for ADA.

Allocation Mechanism

The initial distribution of ADA occurred through a multi-stage Initial Coin Offering (ICO) and allocations to the founding entities responsible for the network's development.

The initial Genesis Block Distribution of approximately 31.1 billion ADA was split between ICO participants (~83%) and the three main entities (~17%).

Usage and Incentive Mechanism

ADA is primarily used for network security, transaction processing, and governance, with incentives structured to promote decentralization and long-term network health.

Core Utility

• Network Fees: ADA is required to pay transaction fees for processing actions and storage costs on the network. The fee structure is calculated based on a constant minimum fee plus a variable component tied to the transaction size in bytes.
• Native Token Functionality: ADA is the base asset, but Cardano supports multi-asset functionality where all fungible and non-fungible tokens (NFTs) are native tokens and share most of ADA's functionality, except that gas fees must always be paid in ADA.

Staking and Rewards

Cardano uses the Ouroboros Proof-of-Stake consensus mechanism, which incentivizes token holders to secure the network through staking.

• Reward Sources: Rewards are paid from two sources pooled into a "pot" each five-day epoch:
  1. Network Transaction Fees: All transaction fees collected are pooled.
  2. Inflationary ADA Rewards: 0.30% of the remaining ADA in the reserve is added to the pot.
• Reward Distribution: A portion of the pot is distributed to ADA stakers (delegators and stake pool operators), while the remaining portion is distributed to Cardano’s treasury. A fixed 20% of transaction fees goes directly into the treasury, though this share can be adjusted through the governance process.
• Decentralization Incentive: The protocol uses a "k parameter" to impose a soft cap on stake pool delegations (the saturation point). Pools that exceed this cap distribute fewer rewards, incentivizing users to delegate to smaller stake pools and minimizing the concentration of staking power.
• Stake Pool Operators (SPOs): SPOs produce new blocks and receive rewards, which include a fixed cost fee and a specified margin percentage before the remaining rewards are distributed proportionally to delegators. SPOs must meet a specified pledge amount to generate rewards.
• Delegators: Tokenholders can delegate any amount of ADA to an existing stake pool to earn rewards without losing custody of their tokens. Stake becomes active after two epochs, and reward distribution begins after the third.

Governance and Treasury

ADA holders participate in the network's evolution and funding through governance mechanisms.

• Project Catalyst: This is an on-chain governance experiment that allows tokenholders to vote on community-proposed projects using the Cardano treasury funds. To vote, tokenholders must have at least 500 ADA delegated before a fund's snapshot date. Voting participants receive rewards from the treasury.
• Voltaire Era: The final era of Cardano's roadmap, Voltaire, aims to implement fully on-chain decentralized governance via CIP-1694. This will introduce a Constitutional Committee and Delegate Representatives (DReps), allowing ADA tokenholders to control treasury disbursement and network upgrades.

Locking Mechanism and Unlocking Time

Cardano's staking mechanism is designed to be flexible and non-custodial, meaning there is generally no mandatory locking period for delegated ADA.

• Staking Flexibility: ADA holders who delegate their stake retain full ownership and can use or withdraw their ADA at any time. Cardano does not employ a slashing mechanism (loss of staked ADA) for delegators.
• Token Locking Functionality: While staking itself does not require locking, the Allegra hard fork introduced token locking support to enable various smart contract use cases. This mechanism allows a specific number of tokens to be "reserved" for a specified period so they cannot be disposed of. Use cases for this functionality include:
  • Contractual Agreements: Locking tokens to represent a property or asset in a contract.
  • Vote Registry: Locking tokens to represent voting rights in governance mechanisms like Voltaire, which helps prevent issues like double-counting votes.
  • Multi-Asset Tokens: Locking ADA to create another custom asset of equivalent value.

Information regarding any specific, scheduled token unlocks for the initial ADA allocation (beyond the initial vesting schedule for the founding entities which concluded in 2019) was not available. The ongoing inflation from the reserve is a continuous, algorithmic release mechanism tied to the five-day epoch cycle.