Charles Hoskinson, the founder of Cardano, has recently addressed the rampant “lies and misinformation” regarding the staking functionality of the network.
In a post shared on X on September 11, Hoskinson expressed his discontent regarding the ongoing spread of false information about ADA. He emphasized that the network does not restrict users by locking their staked tokens. He remarked:
“The level of deception and misinformation about Cardano has reached unprecedented heights. Staking does not lock your assets, yet the lies persist.”
This statement from Hoskinson came in response to claims suggesting that Cardano’s significant market capitalization was a result of investors being unable to liquidate their ADA holdings due to enforced locking. Such claims were circulated during a recent podcast featuring several cryptocurrency commentators, including InvestAnswers, CTO Larsson, MartyParty, and Mando.
Reactions from the Community
In addition to Hoskinson’s comments, numerous Cardano supporters quickly contested the assertions made. Many criticized the misinformation being spread.
PRIDE, a prominent stake pool operator within the Cardano ecosystem, highlighted that Cardano is unique among top-20 cryptocurrencies by offering native liquid staking. This means that ADA tokens are never truly locked. Unlike other blockchain networks, Cardano eliminates the need for liquid staking derivatives, allowing for a flexible staking system where users maintain self-custody of their assets, resonating with the foundational vision of Satoshi Nakamoto, as PRIDE clarified.
The firm stated:
“Staked coins remain in your wallet and can be spent at any time or utilized in DeFi applications. Additionally, this eliminates the risk of slashing.”
According to data from Staking Rewards, over 22 billion ADA tokens have been staked to help secure the network and facilitate new block validations. Currently, the reward rate for staking ADA stands at 2.82% annually.
Recent Cardano Developments
This controversy surrounding ADA staking arises amidst notable advancements in Cardano’s network development.
On September 1, Cardano completed the initial phase of the highly anticipated Chang Hard Fork, which implemented decentralized governance within the network.
As the upgrade approached, the Cardano Foundation revealed that there was a notable increase in key metrics in August, with approximately a 1% rise in smart contracts, transactions, and wallet interactions.
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