The Cardano Foundation, in a proactive move, has released a report outlining the network’s sustainability indicators. This report, developed in collaboration with the Crypto Carbon Ratings Institute (CCRI), preempts the European Union’s Markets in Crypto-Assets (MiCA) regulations by six months.
MiCA, set to be fully implemented in December, mandates crypto-asset issuers and service providers to disclose sustainability data. The Cardano Foundation, responsible for the ADA cryptocurrency, is taking a leadership role by demonstrating its commitment to transparency and environmental responsibility ahead of schedule.
The report emphasizes Cardano‘s energy-efficient proof-of-stake consensus mechanism, a stark contrast to the power-hungry Proof-of-Work systems employed by some other blockchains. This translates to significantly lower electricity consumption for the Cardano network.
Furthermore, the report details the Cardano network’s total annual electricity usage, carbon footprint, and even the marginal power required per transaction per second. These metrics are meticulously measured and align with the draft regulatory technical standards set by the European Securities and Markets Authority.
“By developing MiCA-compliant sustainability indicators, we aim to not only adhere to upcoming EU regulations but also establish a benchmark for the entire crypto industry,” stated Frederik Gregaard, CEO of the Cardano Foundation.
He highlighted the urgency for the industry, with MiCA’s partial implementation in June and the full rollout for crypto-asset service providers arriving in December. “These efforts are crucial for building trust with regulators, investors, and users,” Gregaard emphasized. He believes such proactive measures pave the way for broader adoption of blockchain technology while ensuring environmental sustainability.
Cardano’s initiative showcases the potential of blockchain networks to address environmental, social, and governance (ESG) concerns. By prioritizing transparency and efficiency alongside sustainability, Cardano positions itself as a frontrunner in a maturing crypto market with increasingly stringent regulations.
