In a proactive move, the Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), published sustainability indicators for the Cardano network, ensuring compliance with the upcoming MiCA regulations in the EU. This initiative highlights Cardano’s energy-efficient consensus protocol and underscores its commitment to a sustainable and transparent approach to cryptocurrency.
The report published by the Cardano Foundation and CCRI reveals that the crypto network operates on a consensus protocol consuming significantly less electricity than proof-of-work (PoW) protocols. As of May 2024, the network’s total annual electrical consumption was 704.91 MWh, a figure well below that of PoW-based networks like Bitcoin. Cardano’s sustainability indicators comply with the regulatory technical standards (RTS) proposed by ESMA under the MiCA framework. These indicators cover energy use, greenhouse gas emissions, waste production, and the use of natural resources.
The Cardano Foundation has taken the lead in complying with MiCA sustainability indicators six months before the regulatory deadline, establishing a new standard for the industry within the European Union. Frederik Gregaard, CEO of the Cardano Foundation, stated that this initiative aims to ensure adherence to upcoming EU regulations and set a benchmark for the crypto industry.
Cardano’s initiative demonstrates how blockchain networks can address ESG concerns, particularly environmental impact, while maintaining transparency and efficiency. With the MiCA regulations coming into effect in December, affecting crypto asset service providers, ecosystems such as Cardano will be impacted. The Cardano Foundation and CCRI have taken a significant step towards sustainability and regulatory compliance, positioning Cardano as a leader in adopting responsible and transparent practices. This move could encourage broader adoption of blockchain technology in a sustainable manner, reinforcing the trust of regulators, investors, and users in the crypto industry.
Source: cointribune.com
