Charles Hoskinson defends Cardano and explains ISPOS

• Cardano founder Charles Hoskinson called critics who say that the network has recently become inactive.
• He also explained the concept of ISPOS and how regulatory policy could restrict its commitment.

Cardano founder Charles Hoskinson has presented a status report on the cardano blockchain. He also explained the new fundraising method based on Cardano, which uses the initial Stake Pool Offering (ISPO).

in a program divided on Twitter on November 30th, Hoskinson silenced critics who claimed the recent inactivity of the network. Cardano has experienced a high level of developer activity, he notes when he shows some of the project buildings in the network.

Cardano, the Meld Protocol and ISPOS

It is even more important that the tech entrepreneur has covered ISPOS-a new crypto fundraising strategy that is propagated by the non-depot bank protocol.

"A liberating new way for investors and the community, report with the help of the Cardano blockchain, is to support," says the official report website.

interested people can take part in the ISPO by delegating their ADA token to one of the 10 public stake pools from Meld. The delegation takes place via Cardano-based yoroi or daedalus walls, and users can choose their preferred staking period. Delegiators receive rewards in the form of registered token proportional to duration and the amount of the ADA used. Staked Ada is not lost because users receive reimbursements at a later date.

In particular, the ISPO Fundraising efforts began in early July and are to be completed on December 8th. Your idea comes from the concept of the Stake Pool Operators (Spos). The latter has worked since the introduction of the Cardano Shelley era in 2020. Ada owners simply use their tokens in pools to earn rewards in ADA while the spo get a fee. The higher the number of registered stake pools, the higher the degree of network decentralization. In contrast, depending on the stacking pool used, Meld Labs receives either 100 or 50 percent of the staking rewards.

Regulatory liabilities and ADA price movements

Hoskinson points out that this method could raise concerns about the security offer at the US Internal Revenue Service (IRS). This was the case with some projects that collected money to support their further development.

In addition, the "Draconian" Infrastructure Act brings new reporting requirements for crypto brokers, and there are concerns that ISPO delegates could adhere to. Similar regulatory concerns have led to the deletion of ADA by Etoro. Ultimately, ISPOS Hoskinson adds.

The Twitter user @titw_stakepool, however, criticized that around 23 spoons shape 50 percent of the blocks on Cardano. At some point the small single pools are displaced by the multi-pools, which increases the degree of centralization, he warns.

At the time of printing, our data showed that ADA was traded at USD 1.59, which corresponds to a decrease of 0.6 percent a day. The digital asset is now the sixth largest after crypto market capitalization and has lost the fifth position to competitor Solana (SOL).