On-chain data on April 5 shows that the Cardano Treasury is rapidly growing even as ADA prices struggle to shake off determined sellers. Currently, the treasury holds over 1.48 billion ADA worth over $843 million at spot rates.
If adoption projections are anything to go by, the figure could exponentially increase in the coming months, possibly propping up ADA prices.
Cardano Treasury Rising: Bullish For Development
The Cardano Treasury exists by design. It serves as a war chest to fund ongoing development.
A fixed amount of ADA is set aside per epoch—that is when a block of transactions is confirmed—and sent to the treasury. Every epoch is completed roughly after five days.
Besides ADA accumulation from reserves, the treasury reserves a portion of funds from transaction fees. The more Cardano finds adoption and hosts decentralized applications (dapps) like decentralized exchanges (DEXes), the more the treasury goes.
With ADA from every epoch and transaction fees, Cardano gets sufficient funds to continue development. This arrangement is critical considering that Input-Output Global (IOG) is actively pushing new updates to make the network more performant and reliable.
Currently, in the Basho stage, the objective is to improve performance, allowing the network to host…
