The phases/rewards of Cardano that have ended:
1. Reward period of the Shelley era (Incentivized Testnet - ITN):
· Details: This is an experimental test network that was launched at the end of 2019 prior to the main Shelley upgrade. It allowed real ADA holders to stake their ADA and earn rewards for creating blocks.
· Purpose: This is a practical experiment aimed at achieving decentralization of the network and nurturing a group of stake pool operators (SPOs).
· What ended? The ITN was shut down after the Shelley mainnet went live. Rewards earned on the ITN have been transferred to the mainnet. The system is no longer in existence.
2. Initial high staking reward rate:
· Details: When the Shelley mainnet launched (in 2020), the average annual reward rate (APY) was around 5-6%. This rate was designed to encourage network participation and security maintenance.
· What has ended? This high rate is not permanent. According to network parameters, this rate gradually declines over time. Currently, the average annual percentage yield (APY) is between 2.8% and 3.2%. The phase of high initial rewards has ended.
3. Special Promotion Program:
· Details: The Cardano Foundation or IOG (Input Output Global) occasionally conducts specific educational, developer, or community promotion activities, which include ADA rewards (e.g., certain hackathons or bug bounty programs).
· What has ended? These are limited-time promotional activities that end after their specific duration.
The impact of these ended stages/rewards on ADA:
1. Network maturity: The main goal of these stages is to strengthen the network and transition it from centralization to decentralization. This goal has been successful, and today there are thousands of stake pools protecting network security.
· Stabilization of reward rates: The transition from the initial high rates to the current stable and sustainable rates indicates that the network has moved beyond its initial growth phase and is maturing.
· Limited historical advantage: Participants in the ITN gained early advantages, but now all users stake on the same mainnet under the same rules.
Current active ADA reward system (current ADA incentive system):
1. Ouroboros Proof of Stake: This is Cardano's core consensus mechanism. ADA holders can 'delegate' their tokens to a stake pool.