When the ADA’s price reached $ 0.38, the value of the tokens locked in the Cardano treasury for a short time exceeded $ 100 million.
But what does this mean for the Cardano ecosystem and how can the Cardano community take advantage of the growing amount of funds locked in it?
Currently there are almost $ 100 million locked in Cardano’s treasury.
The price of ADA, the native cryptocurrency of the Cardano blockchain, recently hit a two-year high, surpassing $ 0.39 on January 18. In the past month, there has been significant growth in Cardano, which has increased its price.
Cardano Treasury saw the value of all locked ADA exceed $ 100 million for a short time on January 18, making it one of the largest decentralized blockchain treasures on the market. According to data from Project Catalyst, at the beginning of the last period in the blockchain, there were 261,254,564.02 ADA locked in the treasury. At the time of writing, the ADA’s $ 0.34 price makes the Cardano Treasury $ 88.82 million.
Why is Cardano Treasure important to the community?
The purpose of Cardano Treasury is to raise funds to develop the Cardano blockchain through a voting process. Its core component is a decision-making system that enables community members to collectively reach decisions that govern the network.
Cardano’s treasury is funded through several different channels, such as receiving a percentage of share pool rewards and transaction fees, taking back some of newly minted cryptocurrencies, and accepting occasional donations or grants.
The funds held in the treasury are for funding various projects and proposals to improve the blockchain chosen through community votes.
This is where Project Catalyst comes in. Introduced as the main component of Cardano’s Voltaire management period, the platform provides the necessary infrastructure to facilitate this voting process.
Project Catalyst, which was launched late last year, has so far shown it to be extremely efficient at raising funds from the treasury. Earlier this week, the second treasury fund Fund2 was successfully completed, and 11 different projects built in Cardano were awarded ADA worth of $ 250,000. Fund3, which will be launched in the coming weeks, will see $ 500,000 worth of ADA distributed to a select group of projects.
Cardano Treasury’s ownership of 261 million ADA will provide the Cardano community with a safety net and allow them to explore different projects and ideas related to the Cardano network. While the amount of ADA in the Treasury is constantly replenished, developers will have access to funding for their projects on an ongoing basis.