Hoskinson Unveils Key Factors for Blockchain Sustainability
Cardano’s founder, Charles Hoskinson, has revealed crucial catalysts that will ensure the long-term viability of the blockchain. In response to a recent article, Hoskinson emphasized the importance of activating decentralized governance, the treasury, and partner chains to achieve sustainability.
Patrick Tobler, the CEO and creator of NMKR, initially highlighted the need to increase Cardano’s transaction volume in order to enhance its resilience. Tobler believes that staking pools play a fundamental role in the current state of the Cardano blockchain. He expressed concerns that the blockchain would be in trouble if staking pools stopped generating profits, and he predicted that this trouble would soon arise. As a precautionary measure, Tobler suggested replacing the treasury’s staking incentives with transaction fees.
However, Hoskinson believes that there are alternative ways to make the blockchain sustainable. He outlined three key criteria to rebalance profitability: the implementation of partner chains, an increase in transaction volume, and the appreciation of ADA value.
Tobler disagreed with Hoskinson, asserting that the study indicating the need for more transactions on Cardano cannot be disputed. He acknowledged that both the quantity of transaction fees and the number of active partner chains are insufficient to cover the stake pool incentives. Tobler reiterated the importance of scalability and the necessity of attracting more users to initiate transactions on Cardano.
In other crypto news, Peter Schiff continues to criticize Bitcoin despite its recent performance.