Cardano founder Charles Hoskinson announced that the treasury will not be utilized to cover listing fees for tokens on exchanges. This statement was made on the platform X.
Treasury Will Not Be Used for Exchange Listing Fees
In a statement posted on X, Hoskinson emphasized that projects like SNEK and Midnight will not receive ADA from the treasury for exchange listings. The primary meme coin in the Cardano ecosystem, SNEK, had considered requesting 5 million ADA to get listed on the young centralized exchange Hyperliquid. Hoskinson noted that instead of relying on treasury reserves, projects should raise the required funds through fundraising.
Support for Core Projects from Treasury
While the Cardano Treasury will not be used for exchange listing fees, it remains a vital resource for supporting the network's technical evolution. The Cardano community approved a proposal to allocate treasury funds toward ongoing protocol development led by Input Output Engineering (IOE). These funds will support several significant projects, enhancing the Ouroboros Leios consensus mechanism and integrating the Hydra scalability solution.
Proposal for Treasury Bond Model for Project Funding
Hoskinson also proposed a bond model that would allow projects to obtain ADA from the treasury as a loan. This means that when a project starts generating revenue, it is required to repay the treasury. Cardano has previously faced opposition to treasury usage, but interest in the ecosystem continues to grow, especially with the anticipation of the Midnight Glacier Drop and the Rare Evo conference.
Hoskinson's statements highlight the importance of prudent treasury usage within Cardano and the focus on developing public infrastructure rather than covering marketing expenses for individual projects.
