The partnership between the Cardano Foundation and the Crypto Carbon Ratings Institute (CCRI) has led to the unveiling of sustainability indicators for the Cardano network. These indicators are designed to align with the upcoming Regulation on Markets in Crypto-Assets (MiCA) in the European Union. The report, which was launched on July 2, follows MiCA’s directive for crypto asset issuers and service providers to disclose sustainability indicators. The Cardano Foundation, the entity responsible for overseeing the ADA cryptocurrency, spearheaded the release of these indicators.
In collaboration with CCRI, the foundation ensured the integrity of its blockchain monitoring and data collection methodology. The report highlights Cardano’s use of an energy-efficient consensus protocol, showcasing its significantly lower energy consumption compared to proof-of-work protocols. It details the network’s annual electricity consumption, carbon footprint, and the power demand per transaction per second. Furthermore, the report includes sustainability metrics aligned with the draft regulatory technical standards from the European Securities and Markets Authority.
Frederik Gregaard, the CEO of the Cardano Foundation, emphasized the importance of developing MiCA-compliant sustainability indicators to uphold EU regulations and establish a standard for the crypto industry. He noted the impending six-month deadline for implementing essential ESG binding requirements following the partial enforcement of MiCA regulations. Gregaard believes that blockchain networks can effectively address ESG concerns, particularly environmental impact, while upholding transparency and efficiency.
The initial phase of MiCA regulations, which commenced on June 30 with a focus on stablecoins, will gradually expand to include regulations impacting crypto asset service providers by December. This development will have implications for ecosystems like Cardano within the industry.
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