Cardano's $682M Treasury Set for Community Governance. 🤑👀
Cardano, a major blockchain platform, is nearing a significant change by handing control of its substantial $682 million treasury to its community. This move, revealed by crypto asset tracker TapTools, emphasizes Cardano's commitment to decentralization and community-led governance.
According to TapTools, Cardano's treasury is mainly composed of its native ADA tokens, totaling $682 million. Unlike other blockchains, Cardano's treasury only holds ADA.
Many see Cardano's expanding treasury as a sign of the network's increasing activity. The treasury is crucial for funding ecosystem development, a key factor for the project's long-term sustainability.
Cardano's current governance structure has three layers, with the Cardano Foundation overseeing development and promotion, Input Output Global (IOG) handling research and development, and EMURGO focusing on commercial ventures.
The upcoming "Chang" hard fork is expected to fully decentralize Cardano, giving governance power to ADA holders. Cardano founder Charles Hoskinson confirmed the ongoing implementation of 'Voltaire,' the era of community governance, while dismissing worries about the blockchain's health despite stagnant token prices.
Cardano's strong treasury supports Hoskinson's optimism about the ecosystem. The treasury's growth is attributed to increased network activity, with funds coming from transaction fees and block rewards. The upgrade will allow the community to suggest and vote on projects that could be funded by the treasury.