Frequently asked questions

What is Cardano?


Cardano is a decentralized cryptocurrency built on peer-reviewed research, designed by academics, researchers, engineers and science. Cardano works by a consensus mechanism called Proof of Stake. Cardano is developed by the Cardano Foundation based in Zug, Switzerland. Cardano's currency is named Ada after Ada Lovelace, daughter of Lord Byron and regarded as the first computer programmer. Read more at the https://cardano.org/ here.




Why buy Cardano?


Cardano is a deflationary currency and has a limited supply of 45 billion so no more ADA will ever be produced. As traditional fiat currencies (USD, GBP) inflate each year as federal banks print more money year on year, it is reasonable to assume deflationary currencies like Cardano will deflate in value (increase in price). See US and 1.9 Trillion Dollar Stimulus Cheques as an example of this: https://cnb.cx/3epEBxX




What is staking?


Cryptocurrencies come in two different forms, ones that agree on transactions via a Proof of Work consensus, and others on a Proof of Stake. Proof of Stake generally scales better, is much more eco-friendly, and agrees consensus faster. Proof of Work generally is tied to older cryptocurrencies such as Bitcoin, Litecoin, Dogecoin which require a process called mining where expensive hardware is required. With Cardano being Proof of Stake, expensive hardware is not required. Instead, you can delegate your coins to a staking pool. You can think of this as similar to putting your money into a mid-interest savings account which grows your ADA over time.




Why should you stake?


Cardano is a Proof of Stake cryptocurrency. This means that when you delegate your Cardano (ADA) you can expect to generate 5% apy on your ADA. Not only do you get 5% more ADA per year, but if the value of ADA increases, you also gain in terms of valuation. For instance if you bought 100 ADA at 1 USD per coin and the price raises to 2 USD, not only did you profit 100 dollars on your original investment, but you also gained 10 dollars via staking (5 coins x 2 USD per coin).




Why stake with Ada Charity Pool?


Our mantra is built upon supporting decentralization, which is vital because nobody truly owns Cardano. This is a paradigm shift from central banks. Individual stake pool operators contribute to decentralization, because one cannot operate more than one pool. Currently, 25% of pools are owned by 5 different entities. This is bad practice as it produces an imbalance. The issue proliferates overtime as they split into more pools overtime, leading to centralized decentralization.
We at Ada Charity Pool are a team of 3 people supporting decentralization. We will only ever operate this one pool in our mission to support the network. Our margin cost goes directly to charity. As we ‘mint blocks’ each month, the margin we charge goes to a charity that the community selects via a democratic voting process. We choose the causes you are about. At Ada Charity Pool, we also reward delegators! Each epoch or every 5 days, we draw a user at random based on their delegation (10 Ada equals 1 ticket) and a lucky winner wins a fixed prize of at least $10 given in USD (sent as ADA) directly to their wallet. This reward scales as the pool grows because we want our delegators to be rewarded for supporting charity, decentralization, and us at Ada Charity Pool. We’re here to help you grow your ADA!