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- Cardano has the 8th biggest treasury in the crypto industry.
- Upcoming upgrades would hand over Cardano’s treasury to the community.
- Cardano’s growing treasury reserves reflect tightened network activity.
Cardano is on the verge of a significant milestone: handing over control of its $681.9 million treasury to its community. This move, highlighted by crypto asset tracker TapTools, underscores Cardano’s commitment to decentralization and community governance.
Cardano has the 8th biggest treasury in the industry, and it's being handed over to the community.#ChangHardFork @Cardano @IOHK_Charles pic.twitter.com/jXgquu8QsV— TapTools (@TapTools) June 14, 2024
A data screenshot attached to the TapTools post on X shows that Cardano’s treasury holds its native ADA tokens valued at $681.9 million at the time of the post. Unlike most blockchain protocols, Cardano’s treasury consists solely of ADA tokens, rather than a variety of stablecoins or other digital assets like Bitcoin and Ethereum.
Meanwhile, observers consider Cardano’s growing treasury reserves a reflection of increased network activity. Like most blockchain networks, Cardano uses its treasury to foster ecosystem development, and observers have hailed this structure as a fundamental pillar of the project’s sustainability.
According to the current stage of Cardano’s roadmap, the project runs a three-layered governance structure, with the Cardano Foundation overseeing the platform’s development and promotion. Other governance elements include Input Output Global (IOG), formerly IOHK, responsible for Cardano’s research and development, and EMURGO, which focuses on commercial ventures.
The upcoming “Chang” hard fork aims to fully decentralize Cardano where the community of ADA holders will take over the network’s governance. In an interview, Cardano founder Charles Hoskinson confirmed that the final implementation of ‘Voltaire,’ the era of community governance, is underway, dismissing concerns about the blockchain’s health amid stagnant token prices.
Cardano’s robust treasury reserve supports Hoskinson’s assertion of a healthy ecosystem. Observers attribute the growing treasury to increasing network activity on the blockchain. Notably, the treasury accumulates funds from transaction fees and a portion of block rewards. The upcoming upgrade would empower the community to propose and vote on projects eligible for the treasury’s funding.
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