How does Cardano's Reward System Work?

Cardano's reward system incentivizes stakeholders to participate in the network's consensus and governance processes by providing rewards in the form of ADA, the native cryptocurrency of the Cardano blockchain. Stakeholders who delegate their ADA to stake pools or operate their own pools are eligible to earn rewards based on their contribution to block production and validation. Rewards are distributed automatically through the protocol and are designed to encourage long-term participation, decentralization, and sustainability of the network.

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