Cardano Monetary Policy

This section defines the Cardano monetary policy.

THE LAUNCH OF CARDANO AND AVAILABILITY OF ADA

During the sale that occurred at the launch, 25,927,070,538 Ada were sold. An amount equal to 20% of the total Ada vouchers were sold during the sale period, equating to 5,185,414,108 units. These Ada vouchers were generated and distributed to three entities of the Cardano community, each members of the Technical and Business Development Pool, namely: IOHK, Emurgo and the Cardano Foundation. The total amount of Ada that was made available at the launch is 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 the launch through minting.

Note: There will never be more than 45,000,000,000 Ada in circulation.

TREASURY AND FEES

This section outlines treasury plans and associated 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 going forward. This treasury will be endowed via some portion (yet to be defined), of newly-minted Ada and transaction fees. The treasury will be governed by Ada holders.

MINIMAL FEE (Current Calculation)

The minimal fee = 0.155381 ADA + 0.000043946 (ADA/Byte) x size-of-transaction.

Note: Fee calculations and incentives are areas that are currently being researched and their development is in 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. Firstly in Japan, yen amounts are much larger, where 10,000 yen is similar to a 100 dollar bill. Factoring this into unit calculations, the amount changes from 25 billion Ada to 250 million. Remember that a unit of Ada is equal to a million Lovelaces (the smallest unit), and after factoring in this adjustment, equates to a total of 2.5 million. Secondly, Ada has six digits from the decimal point, rather than eight digits for Bitcoin.