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Working with the Crypto Carbon Ratings Institute (CCRI), the Cardano Foundation produced sustainability indicators for the Cardano network that would fit the upcoming Markets in Crypto-Assets (MiCA) rules in the European Union.
Following MiCA’s rule that creators of crypto assets and service providers reveal sustainability indicators—in this case, derived from the Cardano Foundation, which manages the ADA cryptocurrency—the report was published on July 2.
The organization claims that it has teamed with CCRI to guarantee excellence in its blockchain data collection and monitoring system.
The paper underlines that Cardano uses much less energy than proof-of-work systems and relies on a more energy-efficient consensus protocol.
Together with the marginal power demand per transaction per second, it also provides the Cardano network’s total annualized electricity consumption and carbon footprint.
Furthermore, included in the report are sustainability measures consistent with the European Securities and Markets Authority’s draft regulatory technical guidelines.
Developing MiCA-compliant sustainability measures would help the Cardano Foundation to both guarantee adherence to the forthcoming EU rules and create a baseline for the crypto sector, according to Frederik Gregaard, CEO of the foundation.
He advised the sector to start a six-month countdown to apply important ESG binding criteria, as the MiCA rules are only partially applicable this week.
“As the crypto market matures and the MiCA rules come into full effect, such efforts will be crucial in building trust with regulators, investors, and users alike, paving the way for wider adoption of blockchain technology in a sustainable manner.”
Gregaard said this project shows how blockchain systems may solve ESG issues, including environmental impact, while preserving openness and efficiency.
Under the MiCA package, the first phase of slow rules underlined on stablecoins started on June 30. December will see the introduction of rules affecting crypto asset service providers, influencing ecosystems like Cardano.
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