ADA Deflation Confirmed: Cardano Founder Stands by Long-Term Vision

• Cardano’s founder, Charles Hoskinson, reaffirms that ADA will always remain deflationary.
• Treasury sustainability remains a major discussion point in the ecosystem’s governance.

Charles Hoskinson has once again emphasized that ADA will always be deflationary, standing firm on his long-term vision for Cardano. In his latest podcast, he touched on some issues about the governance of the project, and the handling of the treasury in particular.

The Cardano community has long debated models of sustainability, and Hoskinson outlined the ways in which long-term fiscal security could be accomplished.

Crypto enthusiast Angry Crypto Show drew focus to an interesting comment from Hoskinson, sharing a clip from the podcast in which he assuredly stated that tokenomics in ADA are meant to impose deflationary pressure. This assurance reignited investor debates about Cardano’s future economic model.

JUST IN: #Cardano $ADA Founder Charles Hoskinson says "partner chains give us multiple revenue models, for the people building blocks, so that we don't have to worry about inflation on the ADA side, and can continue to be an extremely deflationary asset." pic.twitter.com/maxBORCD0a

— Angry Crypto Show (@angrycryptoshow) February 21, 2025

Hoskinson Addresses Ownership and Treasury Sustainability

Hoskinson tackled two pressing issues in the discussion: ownership within the ecosystem and how to sustain its treasury. He explained that ownership structures could be flexible, ranging from ADA holders to special entities overseeing developments.

On the other hand, sustainability demands a long-term strategy, and he proposed three possible strategies: an increase in the transaction fees, the introduction of an Active Validation Service (AVS) model, or transformation into a sovereign wealth fund.

Turning the treasury into a sovereign wealth fund could provide consistent annual returns, emulating Norway and Abu Dhabi models. This model would decentralize Cardano and, at the same time, render the entity economically independent.

Cardano Governance Shifts Towards Full Decentralization

Cardano’s governance model is under transition, and the holders of the ADA token feel they are in control of the future of the project. The shift from the model controlled by the developers to decentralization has risks and opportunities.

ADA holders can now influence funding allocations, support new developments like Midgard and partner chains, and enhance the network’s overall efficiency.

However, the decentralization shift comes with some challenges. Trust and good communication among members are required to achieve smooth working and to eliminate inefficiencies and conflict.

Hoskinson acknowledged the dangers of letting go of control in an ecosystem as long as it leaves the potential to mismanage or deviate from the vision initially established by the founder. Nonetheless, he believes the strategy promotes community-driven and expansionary innovation.

Hoskinson Stays Optimistic About the Future

Despite facing some issues, Hoskinson believes in the future of Cardano. According to him, there’s going to be some criticism, and if the team adheres to the core principles of the project, long-term success is inevitable.

The future of Cardano lies in bringing greater liquidity to the network, acquiring new users, and building partnerships in the private sector. Integrity and transparency are the foundation of Cardano’s vision.

Lastly, Cardano’s founder warned people about the fake crypto projects founded solely for profit, appealing to the investors to separate real innovation from imitative strategies. He stressed how blockchain and AI if applied in the proper manner, could restore trust in economic and social networks.

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