25 C
New York
Saturday, October 16, 2021

Buy now

Cardano HODLers have a lesson to learn about short-term gains




Cardano price has been making strong highs lately. In fact, the value of the altcoin managed to climb above $ 2.5 recently. Now, some members of the crypto community have attributed ADA’s appreciation in value as a mere side effect of the overall market recovery. Others, however, have recognized the essence of Cardano’s development activity.

For development activity to continue, developers associated with the network must be duly compensated. However, does Cardano have enough funds for the same?

Decoding the nitty-gritty of Cardano’s treasury

Compared to other blockchain networks, Cardano’s evolution in recent years has been more streamlined and staggered. In fact, by the end of Voltaire, Cardano is expected to be completely self-sufficient. In due process, the network participants will be the ones who will influence and improve the blockchain. In short, Cardano will truly decentralize.

The timely introduction of the treasury system has proven to be a boon for the network. The ultimate motive of the Cardano Treasury is to provide funds to develop the network through a voting process. In particular, the treasury began funding during its second era: Shelly.

Generally, the treasury is financed by withholding a portion of the newly minted tokens and taking a percentage of the participation rewards and transaction fees. Until the beginning of epoch 285 (August 18, 2021), Cardano’s treasury had 573,642,245.57 ADA tokens in its reserve. Their valuation had already exceeded $ 1.2 billion at the time of this writing.

Additionally, data from the Project Catalyst Dashboard highlighted that ADA tokens have been constantly loaded into the treasury. With increasing incentives, the entire development process has arguably become even more lucrative for developers. Therefore, the community can expect the Cardano space to become even more sophisticated over time. This, in turn, would provide long-term security to the HODLers tokens.




Looking beyond short-term gains

Without a doubt, the latest price tag and cash bomb have managed to spark excitement among ADA supporters. However, the true essence of it is not really in the short-term gains, but in the long-term possibilities that it has opened up for Cardano.

By successfully delivering, Cardano has been able to gradually build a loyal HODLer community. Since April, for example, the number of those addresses (holding the token for more than a year) has increased by 38%. At the same time, the number of HODLers in the 1 to 12 months category has also skyrocketed by 102.54%.

Short-term HODLers (who ditch the tokens in a month), on the other hand, are down 26.27% over the same time period.

Over a longer period of time, patience is often equated with profit. As of August 21, 99.1% of all addresses had benefits. In particular, the project was so profitable only once in the past, back in 2017.

Source: IntoTheBlock

If the aforementioned trends continue in the same direction, everyone who has faith in Cardano’s future prospects (including developers and HODLers) will be rewarded for their patience.

This is a machine translation of our English version.

Your opinion is important to us!




TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
2,984FollowersFollow
0SubscribersSubscribe

Latest Articles