Understanding Cardano Monetary Policy
Cardano has a reserve from which new ADA coins are released into circulation every epoch.
Cardano has a reserve from which new ADA coins are released into circulation every epoch.
Coins from the reserve, along with transaction fees, are used for staking rewards and filling the project treasury. This article will focus on the monetary policy of the protocol and the reward mechanisms that keep the network running.
Monetary Policy Monetary policy refers to the protocol rules that govern the creation, distribution, and management of ADA within Cardano. It includes aspects such as the total supply of ADA, the rate at which new coins are released from the reserve, the filling of the project treasury, the collection of fees, and the mechanisms for the distribution of staking rewards.
Cardano’s monetary policy aims to keep the protocol sustainable in the long term, ensuring i Read article: Understanding Cardano Monetary Policy
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