Cardano Founder: 'Misinformation about ADA Staking Has Gone Too Far'

Cardano Founder: 'Misinformation about ADA Staking Has Gone Too Far'

Cardano Founder Pushes Back Against Misinformation About ADA Staking Cardano (ADA) co-founder Charles Hoskinson has pushed back against claims that ADA holders are locked into the staking system and unable to sell their tokens. "Recently, crypto commentators such as InvestAnswers have questioned Cardano’s relatively high market cap by suggesting that it is because ADA holders are locked into staking pools and are unable to sell their tokens," Hoskinson said. "They have also spread misinformation that the Cardano team is somehow forcing ADA holders to stake their tokens using the staking system. This is simply not true." Hoskinson stressed that users are not forced to stake their ADA. He also pointed out that Cardano is the only top 20 cryptocurrency that provides native liquid staking. "We have not felt the need to introduce liquid staking derivatives (LSDs) or liquid staking tokens (LSTs) like other projects have," Hoskinson said. ADA staking is a process that allows holders of the cryptocurrency to earn rewards by delegating their tokens to a stake pool. The rewards are paid out in ADA, and the amount of rewards earned is proportional to the amount of ADA staked and the length of time it is staked. Cardano's staking system has been praised for its security and ease of use. However, some critics have argued that it could lead to centralization of the network, as a small number of large stake pools could control a majority of the network's voting power. Hoskinson has acknowledged these concerns, but he has argued that the benefits of staking outweigh the risks. He has also said that the Cardano team is working on ways to mitigate the risks of centralization.