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Cardano’s goal to distribute ADA as an incentive

Sthuthie Murthy

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Cardano [ADA]'s goal to distribute ADA as an incentive
Source: Pixabay

Lars Brunjes is the Head of Incentives in Cardano, which encourages people to participate in the protocol and much more. The incentives are given out in the form of ADA, enabling the users to join stake pools to receive them. This is considered as a reward for being a part of the protocol and helping to ensure its healthy operation.

Input Output posted on Twitter:

“.@LarsBrunjes is leading the work on incentives in #Cardano, the means of encouraging people to participate in the protocol and behave in a way that is in the best interests of all users and the system as a whole.”

The Director of Education at IOHK, Lars Brunjes says, “it is not just important to finish education but also do something and get your hands dirty and that is why I am also heading the incentives work stream at Cardano.” During a technical presentation, he explained the idea of incentives at Cardano and he has known the audience to be technical so far.

He explained saying:

“Incentives are to incentivize the people in the blockchain system to do the right thing and in our concrete case of Cardano that means we want a certain distribution of a stake.”

In the case of Bitcoin, this means mining blocks and incorporating as many valid transactions in those blocks while in Cardano it means being online and creating a block when elected and being a part of the election process.

The money for the incentives is from either of the two sources, transactions fees or monetary expansion. The total ADA supply is around 31 billion ADA and the maximum supply limit is 45 billion. This gap of 14 billion ADA is used for the incentives.

In the ideal world, monetary and moral incentives should align. Participation in the protocol and stakeholders being online is what Cardano wants to incentivize.

Tayyabpk, a Twitterati says:

“Iohk is building a super currency from grass root level. Cardano the crypto of today and the future.”



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Sthuthie Murthy is a full-time reporter at AMBCrypto. She has been researching and writing about the Blockchain technology for a year now. Her passion for blockchain has led her to be a part of AMBCrypto's news reporting team. She does not hold value in any cryptocurrencies currently.

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