Cardano Monetary Policy
Disclaimer: This outdated version of the monetary policy is still good in spirit but will be revised. Look forward to a blog post about this topic next week.
There will never be more than 45,000,000,000 ADA.
This policy is now outdated. Details of the new monetary policy are coming soon.
Ada Available at the Launch of the Cardano Protocol
Although the actual number of Ada Vouchers sold will be determined after the
Ada Sale ends, 25,927,070,538 Ada Vouchers are planned to be sold. After
the Ada Sale ends, an amount equal to 20% of the Ada Vouchers sold during
the Sale period, or 5,185,414,108 Ada Vouchers, will be 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 to Be Issued During the Operation of the Cardano Protocol
Because there will never be more than 45,000,000,000 ADA ever issued, an
additional 14,979,843,678 ADA (approximately 33% of the total amount of
Ada to ever exist) will be issued gradually for the operation of the Protocol.
The block rewards will be introduced into the Cardano Protocol in 20 epochs
(approximately 3.5 months) after its Launch, and the rate of issuance of Ada
will be follow the schedule below:
- 2,000 ADA per block for the initial 3,744,961 blocks,
- 1,000 ADA per block for the subsequent 3,744,961 blocks,
- 500 ADA per block for the subsequent 3,744,961 blocks,
- and so on and so forth, in such a way that the ADA per block will be halved
every 3,744,961 blocks.
Given that 3 new blocks will be generated every minute, 99.95% of the additional
14,979,843,678 ADA necessary to reach the 45,000,000,000 ADA will be issued in
approximately 24 years.
Of the ADA that will be issued per block:
- 75% of it will be given to the protocol participants as a block reward.
- 25% of it will be directed to a special address that is earmarked for
the Cardano Treasury, from which developers and ecosystem participants
could request the funding of their projects, and the stakeholders of the
system would vote to approve or reject their proposals. (The mechanism by
which the Cardano Treasury will operate will not be available at the launch
of Cardano but the mechanism and its implementation are currently under
research and development.)