Cardano Monetary Policy

ADA AVAILABLE AT THE LAUNCH OF THE CARDANO PROTOCOL

25,927,070,538 Ada were sold during the sale. An amount equal to 20% of the Ada Vouchers sold during the sale period, 5,185,414,108, Ada were generated and distributed to three entities of the Cardano ecosystem that are part of the Technical and Business Development Pool: IOHK, Emurgo and the Cardano Foundation. The total amount of Ada available at Launch will therefore be equal to 31,112,484,646 ADA.

ADA SUPPLY CAP

Ada is capped at an arbitrary 45,000,000,000 or forty-five billion Ada.

ADA TO BE ISSUED DURING THE OPERATION OF THE CARDANO PROTOCOL

The remaining Ada, 13,887,515,354, will be issued after launch through ‘minting’.

There will never be more than 45,000,000,000 ADA

TREASURY AND FEES

BOOTSTRAP ERA (LAUNCH)

Cardano is currently in its bootstrapping phase. During this phase, fees are not being collected and no Ada is being minted. Fees from this phase will be collected in the future and they will be destroyed.

TREASURY

Cardano will have a treasury. The treasury will be endowed via some portion (yet to be decided) of newly minted Ada and transaction fees. The treasury shall be governed by Ada holders.

FEE (Current Calculation)

Minimal fee = 0.155381 ADA + 0.000043946 (ADA/Byte) x size-of-transaction

Fee calculations and incentives are still an area of research under progress.

DENOMINATIONS

  • 1 ADA = 1,000,000 Lovelaces
  • 1 Lovelace = 1/1,000,000 Ada
  • Ada has six decimal places.
  • 1.000000 = 1 Ada
  • 0.000001 = 1 Lovelace

In terms of money units there are two points of consideration. First in Japan, yen amounts are much larger, 10,000 yen is like the 100 dollar bill and factoring this into the units you go from 25 billion Ada to 250 million. Second Ada has six digits from the decimal not eight for Bitcoin. An Ada is a million Lovelaces (the smallest unit). Adjusting for this takes you to 2.5 million.