Cardano Hits New Network Milestones As Hoskinson Debunks Faulty Staking Claims

Cardano founder Charles Hoskinson has rejected the falsehoods and misinformation about the network and its staking procedures. In a post on X dated September 11th, 2024, Hoskinson voiced his frustration over the spread of false claims concerning ADA, clarifying that the network does not lock its staked tokens.

He commented that this kind of misinformation about Cardano has reached unprecedented levels. The founder would go on to say that staking on Cardano does not involve locking, yet for some reason the lies persist.

Community Reaction

The aforementioned remarks followed allegations suggesting that the substantial market capitalization of Cardano was due to investors being unable to sell their ADA holdings, as their assets were purportedly locked. These claims were made during a recent podcast featuring several crypto experts, including InvestAnswers, CTO Larsson, MartyParty, and Mando.

During the podcast, MartyParty argued that the large market cap did not accurately reflect its value. Instead, he contended that it stemmed via investors being unable to liquidate their ADA holdings, having been deceived into locking their assets in the staking pool.

Besides Hoskinson, several Cardano holders swiftly countered these claims, denouncing the false accusations. PRIDE, a prominent stake pool operator in the network, highlighted that Cardano stands out among the top 20 crypto projects by offering native liquid staking, meaning ADA tokens are never locked.

Staking Rewards And Overall Development

Various reports indicate that over 22 billion ADA tokens have been staked to enhance network security and facilitate block validation. The annual reward rate for staking ADA currently stands at 2.82%. The debate over ADA staking comes as Cardano has recently achieved notable milestones in its network development.

On September 1st, 2024, Cardano finally completed the initial phase of its eagerly awaited Chang Hard Fork, which introduced decentralized governance to the network. Leading up to the upgrade, the Cardano Foundation reported an increase in key metrics in August, with the number of smart contracts, transactions, and wallet interactions rising by approximately 1% each. A recent meme coin launchpad also helped the company reach record transaction volume.