'Pre-Mined ADA Myth' Busted by Cardano Community: Details

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Wed, 11/02/2022 - 16:06
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Cardano (ADA) ecosystem veterans Cardanians shared a detailed post about the role of the initial ("pre-mined") ADA supply in the early development of the blockchain's ecosystem.

Cardano (ADA) community should not worry about ADA pre-mined supply

In a new longread, representatives of the Cardanians staking pool explained that "pre-mined" ADA coins should be neither interpreted as a centralization instrument nor as a threat to Cardano's (ADA) sustainability.

According to this text, even Bitcoin (BTC), which was introduced 14 years ago, was not decentralized from the very beginning. The first mining rewards were controlled by a small group of enthusiasts.

At the same time, it was necessary to launch a new blockchain and keep it secure. Even nowadays, a monstrous amount of Bitcoins (BTC) is still stored in a so-called "Satoshi wallet."

Over 1.12 million Bitcoins (BTC) are stored on this wallet; however, this does not expose the Bitcoin (BTC) network or its mining ecosystem to a centralization threat.

Migration to PoS made Cardano (ADA) fully decentralized

Not unlike with early Bitcoiners, initially, the ADA supply was controlled by three entities — IOHK (now IOG), Emurgo and the Cardano Foundation.

Meanwhile, when Cardano (ADA) migrated to a proof-of-stake (PoS) consensus, such centralized distribution stopped affecting the current status of Cardano (ADA) decentralization.

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Cardano Outperforms Current Proof-of-stake Chains: Report

As covered by U.Today previously, Cardano (ADA) remains among the most popular proof-of-stake (PoS) ecosystems. Prior to the Merge activation by Ethereum (ETH), it had been the largest PoS chain.