charles hoskinsonCardano’s founders believe that decentralized governance, treasury, and partner chain activation are important catalysts for driving blockchain sustainability.
Improving blockchain scalability and transaction volume
The Cardano founder shared important catalysts for blockchain sustainability in response to a previous X post. Patrick Tobler, a cryptocurrency enthusiast and CEO and founder of NMKR, started the conversation by stating that the number of transactions on Cardano needs to increase to increase the sustainability of the network.
This comes as Cardano faces recent challenges with staking rewards dropping below 3%.To be precise, the current reward rate is based on data from staking reward sites. cardano (ADA)’s investment ratio is 2.97%.
He hinted that staking pools are the current pillar of the Cardano blockchain, saying that if they stop being profitable, “we’re in trouble.” Moreover, Tobler believes that the season of “trouble” is approaching rather quickly.
He advised replacing staking rewards, which are earned from the treasury through transaction fees, as a precautionary measure.
Cardano founder talks about the need for decentralization
However, Hoskinson strongly believes there are other ways to achieve blockchain sustainability. First, we highlighted partner chains, volume growth, and ADA value growth as core metrics to rebalance profitability.
Tobler appears to disagree with Hoskinson, noting that the latter cannot reasonably refute the analysis that Cardano needs more transactions.
For context, Tobler acknowledged that there are currently no partner chains in operation and that the amount of transaction fees is not yet sufficient to cover stake pool rewards. He reiterated the fact that Cardano needs scalability and more users initiating more transactions.
“This is the only way to make running a stake pool financially viable in the long term,” Tobler added.
It is worth noting that staking on the Cardano blockchain is of great importance given that it provides a platform for ADA holders to participate in network validation while earning rewards.
Ultimately, Hoskinson agreed that all digital assets require more transactions, which is what blockchain is for. However, he reiterated that Cardano needs decentralized governance and partner chains to operate and guarantee the operation of the Treasury.
Although it is unclear when these elements will take effect, Hoskinson said that they will further improve Cardano’s operational efficiency. Upgrading a RATS pool Go to function node.
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