By
Chimamanda U. Martha
July 4th, 2024
This effort is geared towards enhancing both energy efficiency and transparency throughout the network.
The Cardano Foundation, in partnership with the Crypto Carbon Ratings Institute (CCRI), has proactively unveiled sustainability metrics for the Cardano network ahead of upcoming regulations outlined in the Markets in Crypto-Assets (MiCA) framework in the European Union.
This effort is geared towards enhancing both energy efficiency and transparency throughout the network.
MiCA Compliance Update
On July 2, the Cardano Foundation released a detailed report outlining the network’s sustainability metrics. This report meets MiCA’s requirements for crypto asset issuers and service providers to disclose environmental impact metrics. Working closely with CCRI, the foundation implemented rigorous data collection and blockchain monitoring practices.
The report highlights that Cardano utilizes a proof-of-stake consensus protocol, leading to substantial reductions in energy consumption compared to conventional proof-of-work systems. It provides detailed metrics such as total annual electricity consumption, carbon footprint, and marginal power demand per transaction per second within the Cardano network. These metrics are in accordance with preliminary regulatory technical standards put forward by the European Securities and Markets Authority.
Frederik Gregaard, CEO of the Cardano Foundation, emphasized the significance of this initiative, highlighting its alignment with upcoming EU regulations and its potential to establish industry benchmarks. As MiCA regulations come into effect, the industry now faces a six-month timeline to implement essential ESG (Environmental, Social, and Governance) requirements.
About MiCA
The MiCA regulation is a comprehensive framework developed by the European Union to standardize rules for crypto assets across member states. MiCA aims to enhance consumer protection, ensure financial stability, and foster innovation within the crypto market by providing clear guidelines for issuers and service providers.
An essential element of MiCA is its focus on sustainability, requiring crypto asset entities to disclose comprehensive sustainability metrics like energy usage and carbon footprint. This requirement is intended to enhance transparency and encourage environmental accountability across the industry. MiCA’s phased implementation began in June 2023, with full enforcement expected by December 2024.
Cardano Price Movement and Upcoming Hard Fork
Cardano’s native token ADA has experienced a positive price trend. Over the past 24 hours, ADA prices have risen by 2.3%, reaching approximately $0.408. Analysts are optimistic about ADA’s potential upward trajectory, anticipating a possible rally toward $0.82.
This forecast is based on a recent breakout from a falling wedge pattern and increasing bullish momentum. However, the confirmation of this breakout will depend on ADA’s ability to hold key resistance levels.
This uptick comes just days before the highly anticipated Cardano Chang hard fork. The Chang hard fork is expected to enhance decentralization within the network. The hard fork aims to unlock 1.5 billion ADA through a DAO-style voting system, further empowering the Cardano ecosystem.