Cardano founder Charles Hoskinson has concluded speculation that Cardano Treasury will be used to pay the exchange list fee for ecosystem tokens.
In a direct statement Posted on xHoskinson has made it clear that projects like Snek and Midnight will not receive ADA from the Treasury for this purpose.
Snek, the leading meme coin in the Cardano ecosystem, proposed to ask the Ministry of Finance for 5 million ADAs. the goal? They are said to pay to chase high lipids, which are relatively young intensive exchanges, and get a list of tier 1 exchanges.
It’s not cheap to list them on one of these popular platforms based on the information your team provides. Anything from $100,000 to $500,000 is possible. Instead of adopting Treasury reserves, businesses usually need to raise these funds through funding. What’s significantly different from the standard is Snek’s proposal.
The announcement was also applied in the middle of the night, Cardano’s privacy-centric sidechain built for data protection and confidential smart contracts. Hoskinson is personally involved in midnight development, but he also reaffirmed that it would need to self-fund its exchange list when it came.
Community approves the use of the Ministry of Finance for core development
The Cardano Treasury will not be used to fund exchange list fees, but remains an essential resource to support the technological evolution of the network. The Cardano community has approved a proposal to allocate the financial fund to ongoing protocol development, led by the main technical team behind Cardano, Input and Output Engineering (IOE).
Money supports several important projects. The consensus mechanism of Cardano’s proof was enhanced by improving network performance and efficiency using usOloboros leios. Cardano’s Layer 2 Scalability Solution, Hydra, is also integrated to facilitate faster and cheaper transactions. Project Acropolis, which aims to enhance the general modularity of governance mechanisms and Cardano designs, is another important area of concentration.
Securing funding was just the first step, according to Ricky Rand, general manager of Input Output Engineering. He said the approval showed that the diversified funding and project delivery worked well on a large scale and could express confidence in Cardano’s future.
Community decisions highlight core principles within Cardano ecosystems. Rather than covering marketing and commercial expenses for individual projects, the finance funds should be used to develop public infrastructure that benefits the entire network. It also demonstrates the increasing effectiveness of Cardano’s autonomy model, particularly through an on-chain voting system known as a project catalyst in which ADA owners determine how Treasury resources are allocated.
Hoskinson proposes a financial debt model for project funding
He didn’t abandon everyone, but Hoskinson essentially destroyed the concept of “free Treasury for listings.” Rather, he eliminated the concept of repaymentable bonds. This allows the project to obtain an ADA from the Ministry of Finance, but it is a loan rather than a handout. When they start making money or secure some income, it’s time to pay it back.
In the past, Cardano opposed the idea of the Ministry of Finance. Concerns about danger and centralization have led to the recent rejection of attempts to convert some of the sovereign wealth funds into stubcoins.
Despite the controversy, there is still much interest in ecology. Expectations are rising for the Midnight Glacier Drop, an airdrop connected to the Midnight Project. The rare EVO meeting scheduled for the second half of the quarter is expected to provide an official launch date.
