How Does Cardano’s Treasury System Work?

Cardano has a unique treasury system that ensures long-term sustainability. A portion of transaction fees and staking rewards is allocated to the treasury, which funds ongoing development and ecosystem growth. Unlike traditional projects that rely on external funding, Cardano's treasury is community-driven, with ADA holders voting on proposals. This decentralized funding model ensures continuous improvement without external financial dependencies. The impact of treasury-funded developments can influence the ADA price as new upgrades and features enhance the network’s value.