Cardano (ADA): how it works, supply and reviews
Layer 1 blockchain
In short
- Type
- Public layer-1 proof-of-stake blockchain with a UTXO ledger, native tokens and smart contracts
- Maximum supply
- 45 billion ADA
- Risks and caveats
- New ada is issued from the reserve as staking rewards and treasury funding until the 45 billion cap is reached.
- Checked
- 28 October 2026
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Key facts
- Ticker
- ADA
- Category
- Layer 1 blockchain
- Network
- own blockchain
- Official site
- cardano.org
- Whitepaper
- docs.cardano.org/introduction
- Source code
- github.com/input-output-hk/cardano-sl
Data: CoinGecko, 2026-10-27. Only projects that still trade with meaningful volume are listed.
What is Cardano
Cardano is a proof-of-stake blockchain platform launched in September 2017, built with a research-first approach. Its currency, ada (ADA), pays transaction fees, is delegated to stake pools to secure the network and is used to vote in on-chain governance.
Network and consensus
| Parameter | Details |
|---|---|
| Type | Public layer-1 proof-of-stake blockchain with a UTXO ledger, native tokens and smart contracts |
| Consensus | Ouroboros proof of stake; blocks are produced by stake pools chosen in proportion to delegated ada |
| Launched | 23 September 2017 (Byron era, mainnet launch) |
| Block time | About 20 seconds on average |
| Smart contracts | Yes, since the Alonzo upgrade on 12 September 2021 (Plutus) |
| Programming language | Contracts compile to Plutus Core; common languages are Aiken and Plinth (Haskell) |
Supply and issuance
| Parameter | Details |
|---|---|
| Maximum supply | 45 billion ADA |
| Issuance | Each epoch 0.3% of the remaining reserve goes into a rewards pot, so issuance declines over time |
| Staking rewards | 20% of each epoch's pot goes to the treasury; the rest is paid as staking rewards |
| Initial distribution | Pre-launch voucher sale; IOHK, EMURGO and the Cardano Foundation received an additional 5,185,414,108 ADA at genesis |
What ADA is used for
- Paying transaction fees.
- Delegating to stake pools to secure the network and earn rewards.
- Voting in on-chain governance, directly or through delegated representatives (DReps).
- Paying for services in applications built on Cardano.
Who develops and governs Cardano
- Founders
- Charles Hoskinson and Jeremy Wood (2015)
- Developer
- IOHK (now IOG) built the original software; Intersect coordinates development and maintenance today
- Foundation
- Cardano Foundation (Switzerland) oversees and promotes the ecosystem; EMURGO focuses on commercial adoption
- Governance
- On-chain: ada holders, DReps, stake pool operators and a constitutional committee vote under a community-ratified constitution
- Open source
- Yes; the node software is public on GitHub
History
| Date | Event |
|---|---|
| 2015 | Project started by Charles Hoskinson and Jeremy Wood. |
| 23 September 2017 | Mainnet launched (Byron era) and ada introduced. |
| 29 July 2020 | Shelley upgrade introduced staking and moved block production to community stake pools. |
| 1 March 2021 | Mary upgrade added native tokens. |
| 12 September 2021 | Alonzo upgrade enabled Plutus smart contracts. |
| 1 September 2024 | Chang upgrade began on-chain governance under CIP-1694. |
| 29 January 2025 | Plomin upgrade enabled the full set of governance actions and the DRep role. |
Security and audits
- Ouroboros is described by the project as the first provably secure proof-of-stake protocol based on peer-reviewed research.
- Delegating ada leaves it in the holder's wallet, and the protocol has no slashing.
- The 2017 ada voucher sale applied KYC checks and its distribution process was audited.
Risks and caveats
- New ada is issued from the reserve as staking rewards and treasury funding until the 45 billion cap is reached.
- Staking rewards depend on the chosen stake pool; a poorly run pool lowers rewards.
- Cardano's documentation states that the platform does not review assets or tokens issued on it.
Official links
- Website: cardano.org
- Docs: docs.cardano.org/about-cardano/introduction
- Source code: github.com/IntersectMBO
- Governance forum: cardano.org/governance
Questions and answers
What is Cardano?
Cardano is a proof-of-stake blockchain platform launched in September 2017. Its cryptocurrency is ada (ADA).
Who created Cardano?
Cardano was started in 2015 by Charles Hoskinson and Jeremy Wood. IOHK (now IOG), the Cardano Foundation and EMURGO shared the work at launch; today governance is on-chain.
What is the maximum supply of ADA?
The supply is capped at 45 billion ADA. New ada comes only from a fixed reserve as staking rewards and treasury funding.
How does Cardano reach consensus?
Cardano uses the Ouroboros proof-of-stake protocol. Stake pools are chosen to produce blocks in proportion to delegated ada, with a new block roughly every 20 seconds.
Can I lose ADA by staking?
Delegated ada stays in the holder's wallet and Cardano has no slashing. Only the size of rewards depends on the stake pool chosen.
Sources
- CoinGecko — Cardano
- Cardano — What is Cardano?
- Cardano — How Cardano works
- Cardano — Hard forks
- Cardano — Genesis distribution
- Cardano — Smart contracts
- Cardano — Governance
- Cardano Docs — Introduction
- Cardano Docs — Monetary policy
- Cardano Docs — Ouroboros overview
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