As a seasoned analyst with over two decades of experience in the financial markets, I find myself intrigued by the Cardano Foundation’s strategic moves and the recent developments within the Cardano ecosystem. The report sheds light on the foundation’s commitment to fostering the growth of the Cardano network, rather than chasing immediate financial returns.
In a recent update, it’s been disclosed that as of December 31, 2023, the Cardano Foundation – a non-profit organization backing the Cardano network – reports holding approximately $478.24 million worth of assets. Around 82.5% of these assets are in the form of ADA, 10.1% are invested in Bitcoin, while the remaining percentage is held as cash and its equivalent forms.
As per the Financial Insights Report, the foundation distributed $19.22 million across three primary areas and incurred operational costs amounting to $4.55 million, thereby increasing its overall capacity. In total, the foundation reported spending approximately $23.7 million this year, with the aim of enhancing Cardano’s adaptability and prominence as a critical infrastructure element for institutional-grade use cases.
Significantly, since the start of this year, the cost of Bitcoin, the leading cryptocurrency, has soared beyond 118%, currently trading at approximately $92,500. Conversely, the price of Cardano’s ADA coin decreased by roughly 0.3%.
If the Cardano Foundation kept their assets throughout this period, they might currently possess more than $100 million in Bitcoin value, considering Bitcoin’s significant increase in recent weeks. However, whether they still hold those funds remains uncertain.
The report explains that the primary source of income for the Cardano Foundation is derived from the rewards gained by staking their held ADA tokens within the Cardano network. In the previous year, these 668.8 million ADA tokens generated an extra 20.9 million ADA, equating to a 3.1% return.
The report reads:
The Delegation Plan details how the Foundation chooses which pools to delegate, giving preference to those that make substantial contributions to the Cardano community instead of just those with the highest returns. Rather than seeking financial gains for the Foundation, our goal is to have a greater impact on the ecosystem as a whole.
The report comes shortly after the Cardano network launched node 10.1 in a critical release ahead of the upcoming Chang 2 hard fork, which will bring significant upgrades to the network’s governance system, including completing the transition to on-chain governance.
Through a new development known as a hard fork, we’re enhancing the groundwork established during the Chang 1 hard fork in September. This update grants ADA token owners the opportunity to actively shape the protocol’s future by taking part in its decision-making process via the governance system.
By giving their voting authority to Delegated Representatives (DReps) or becoming DReps themselves, ADA token holders can cast votes in the blockchain. Beyond decision-making, a recent update before the hard fork brings about numerous technical advancements. These include new Plutus primitives that enhance smart contract capabilities, as well as stronger assistance for Stake Pool Operators.
The activation of Chang 2 requires approval from both the Interim Constitutional Committee (ICC) and more than half of the stakeholders among Stake Pool operators. Once these conditions are satisfied, a one-epoch validation phase will begin, leading to the complete execution of the hard fork.
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2024-11-14 04:21