ADA Whale, an anonymous Cardano enthusiast known for providing the most up-to-date informative content about the popular altcoin project Cardano, has shared the annual inflation figures related to ADA. These figures reveal that ADA is progressing on a scarce path, or in other words, on a path where it is becoming increasingly rare.
ADA Whale, a Cardano enthusiast, has shared the latest figures showing that the annual inflation of ADA, the native currency of the Cardano blockchain, is rapidly decreasing. Currently, in the 435th epoch of Cardano, this indicator stands at 3.6%. This metric decreases over time, indicating that Cardano’s tokenomics is strong in the long term and painting a positive picture for the price of ADA. The ADA enthusiast also mentioned that 25 epochs ago, this indicator was at 3.9%. 125 epochs ago, ADA’s annual inflation was nearly 45% higher than it is today.
In the Cardano blockchain, one epoch is equivalent to five days. According to the analytical platform Cardano Countdown, as of the current epoch, only 62.4% of the total ADA supply, which is 36.1 million ADA, is staked in the stake pools.
Furthermore, Cardano supporters point out that as the price of Bitcoin (BTC) decreases, the scarcity of the popular altcoin decreases even faster. Unlike Ethereum (ETH), which is Cardano’s biggest competitor, ADA’s supply is limited.
ADA Whale’s followers are very excited about these dynamics of Cardano. Some have compared the decrease in ADA’s inflation to the effects of periodic emission cuts in Bitcoin-like Proof of Work (PoW) blockchains and said the following:
In Cardano, there is a block reward halving every 5 years, and it happens with a small amount each time. That’s why you don’t feel this decrease. Most people don’t even know about this hidden feature in Cardano.
Current data shows that Cardano is currently the second largest Proof of Stake (PoS) blockchain. ADA holders can stake their coins by delegating them to their preferred stake pool operators or SPOs. Users receive additional rewards in the form of core tokens associated with these pools, in addition to ADA payments in staking pools.
Cardano implements a series of mechanisms to protect the staking process against whale dominance. Simply put, when a pool becomes too large, it becomes unprofitable to stake with it.