Cardano Founder Charles Hoskinson Weighs In on Network’s Sustainable Security Model

  • Cardano founder Charles Hoskinson recently shared his thoughts on a survey about the security sustainability of the Cardano network.
  • The poll initiated by a prominent Cardano Stake Pool Operator (SPO) has invited community members to weigh in on two critical options concerning the network’s future security model.
  • A notable insight from Hoskinson emphasized the Bitcoin network’s revenue model, which relies heavily on transaction fees.

Cardano Security Model: Insights and Community Reactions

Poll on Cardano’s Future Security Strategy

In a recent reaction to an X post by Rick McCracken Digi, a Cardano Stake Pool Operator (SPO), Charles Hoskinson, the founder of Cardano, shared his perspectives on the security sustainability of the Cardano network. McCracken’s poll asked the ADA community to choose between two options for sustaining the network’s future security. The first option suggested a 2% inflation of ADA rewards, akin to other blockchains like Ethereum, Dogecoin, and Solana. The second option proposed allocating 20% of the inflation-generated revenue from staking other or partner chains to support Cardano’s security.

Community’s Mixed Reactions to Poll Results

The poll results revealed a divided community. While 20% of respondents favored the first option, 35.3% preferred the second option. Interestingly, a significant 44.8% of respondents chose the ‘show results’ option, indicating indecision or the desire to weigh the options more carefully.

Hoskinson’s Take on Transaction Fee-Based Revenue

Responding to the poll, Charles Hoskinson underscored an important statistic from the Bitcoin network: 75% of the revenue from mining Bitcoin blocks originates from transaction fees rather than block inflation. Hoskinson suggested that Cardano could follow a similar path. He highlighted that with millions of transactions expected on the Cardano network, transaction fees could provide a stable and sustainable source of revenue to fund block producers, thus ensuring the network’s security.

The Broader Shift in Crypto Revenue Models

Hoskinson’s insights align with a broader trend in the cryptocurrency industry towards transaction fee-based revenue models. This shift is viewed as more sustainable compared to relying solely on block rewards. With increasing blockchain activity and transaction volumes, transaction fees become a more dependable revenue stream for maintaining network security and incentivizing network participation.

Challenges Ahead: Throughput and User Adoption

Rick McCracken Digi echoed Hoskinson’s sentiments but pointed out the challenges of achieving the necessary throughput and user adoption to ensure sustainability. The conversation highlighted the importance of increasing the number of transactions and users on the Cardano network to make a transaction fee-based revenue model viable. Addressing these challenges is crucial for the long-term security and scalability of the network.


The discussion sparked by McCracken’s poll and Hoskinson’s insights reflect the ongoing dialogue within the Cardano community about the best strategies for ensuring the network’s future security. As Cardano continues to grow, the shift towards transaction fee-based revenue appears to be a promising approach. However, achieving this goal will require addressing key challenges in throughput and user adoption, which will be critical for sustaining the network’s security and long-term viability.

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Lucien Renard
Lucien Renard
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.

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