Cardano founder Charles Hoskinson has dismissed the “lies and misinformation” surrounding the community’s staking operations.
In a Sept. 11 submit on X, Hoskinson expressed frustration over the unfold of misinformation about ADA, noting that the community doesn’t lock its staked tokens. He acknowledged:
“The lies and misinformation about Cardano have reached epic ranges. Stake isn’t locked, however they nonetheless lie.”
Hoskinson’s assertion adopted claims suggesting that Cardano’s massive market cap was as a result of buyers being locked into their ADA holdings and being unable to promote. This allegation emerged throughout a current podcast with a number of crypto commentators, together with InvestAnswers, CTO Larsson, MartyParty, and Mando.
Within the podcast, MartyParty prompt that Cardano’s excessive market capitalization wasn’t a real reflection of its worth. As a substitute, he argued that it resulted from buyers’ incapacity to promote their ADA holdings as a result of that they had been “tricked” into locking their belongings within the community’s staking pool.
Group response
Other than Hoskinson, a number of Cardano holders rapidly refuted the claims, with many condemning the false accusations.
PRIDE, a notable stake pool operator within the community, identified that Cardano was the one top-20 crypto undertaking providing native liquid staking, which means ADA tokens are by no means locked. In contrast to different networks, Cardano doesn’t want liquid staking derivatives or tokens. So, its versatile staking system permits customers to take care of self-custody of their belongings, aligning with Satoshi Nakamoto’s imaginative and prescient, PRIDE defined.
The agency added:
“Staked cash don’t depart your pockets, and may be spent anytime or utilized in DeFi. That additionally means no slashing.”
In line with Staking Rewards information, over 22 billion ADA tokens have been staked to contribute to community safety and facilitate the validation of recent blocks. The present reward fee for staking ADA is 2.82 % per yr.
Cardano developments
The controversy surrounding ADA staking comes as Cardano has not too long ago recorded important milestones in its community improvement.
On Sept. 1, Cardano accomplished the primary section of its extremely anticipated Chang Laborious Fork, which launched decentralized governance to the community.
Within the lead-up to the improve, the Cardano Basis revealed that the community noticed an uptick in key metrics in August because the variety of good contracts, transactions, and pockets interactions elevated by round 1%, respectively.
