Cardano pays staking rewards for service for the protocol. Decentralization and security of the protocol is growing along with the distribution of ADA coins. The higher the value of ADA coins, the more expensive a potential 51% attack will be. Demand for coins increases security. The more distributed ADA coins are among users, the more people will decide the fate of the protocol. The protocol must motivate people to hold coins, so it gives them the opportunity to create passive income. Decentralized networks are like companies that have revenues and expenses. As we described above, the expenses are related to security and decentralization. Furthermore, there are expenses related to protocol maintenance, innovation, and ecosystem development. Revenues are made up of the monetary reserve, i.e., ADA coins that will be released into circulation in the coming years. In addition, fees collected for services. Once the reserve is depleted, the protocol will depend solely on the fees collected. Services must be created around the Cardano protocol that will be widely used. This is the only way to create a working econonomy that will ensure the long-term sustainability of the key parameters of the protocol.
