- Patrick Tobler thinks Cardano must increase the number of transactions to keep the chain sustainable.
- The Cardano stakeholder believes the network will suffer if stake pools become unprofitable.
- Charles Hoskinson believes other factors, not fees, would appreciate will rebalance Cardano.
Patrick Tobler, CEO of NMKR, believes there needs to be an increase in the number of transactions on Cardano to keep the chain sustainable. In a recent post on X, Tobler noted it would be detrimental for Cardano if running stake pools became unprofitable.
In his opinion, replacing staking rewards coming from the treasury through transaction fees would be a step forward toward achieving the sustainability of Cardano. He encouraged the Cardano community to engage in processes that would increase the number of transactions on the blockchain’s network.
Shifting away from Tobler’s position, Cardano founder Charles Hoskinson noted that Cardano’s sustainability does not depend on the number of transactions. According to him, the three factors that will rebalance profitability in the Cardano ecosystem include partnerchains, increased transaction volume, and ADA value appreciation.
Responding to Hoskinson’s argument, Tobler insisted that increasing the number of transactions on Cardano is at the core of the blockchain’s sustainability program. He highlighted that no partnerchain is live, and the transaction fees are nowhere near covering the stake pool rewards.
He cited Monad Alexander’s analysis from about one year ago when the Cardano community stakeholder argued that the Cardano ecosystem needs more transactions. According to him, that is the only way to make the network financially viable and to promote its stability.
Hoskinson acknowledged the need for increasing transactions, noting it as the purpose of all blockchains. However, he believes the most vital things the community needs include getting decentralization governance running, the treasury operational, and partnerchains running.
Cardano’s staking reward rate was 2.97% at the time of writing. A value Tobler and some other community members consider low and unencouraging.
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