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May 20, 2022 18 tweets 7 min read Read on X
A beginner’s overview of Catalyst (Cardano’s Treasury and innovation lab)

[A Thread🧵]

#CardanoCommunity #CardanoADA #Cardano $ADA Image
1/ Intro

Catalyst is often jokingly referred to as Cardano’s VC, as it aims to collect a portion of fees generated from each transaction and use that money to fund projects that are beneficial to the community.

A funding round for Project Catalyst happens around every 6 weeks.
2/ Purpose

Catalyst is still in an experimental phase where its operating procedure is subject to change considerably

But it ultimately seeks to be a means by which to fund projects that help the Cardano ecosystem, irrespective of whether or not they’re necessarily profitable
3/ Loss leaders

It can be considered one of Cardano’s secret weapons. Most other blockchains without communal treasury systems only incentivise easily monetizable projects.

Cardano promotes useful projects, think of tools like Wikipedia which aren’t profitable. Image
4/ How does it work?

Every 1.5 months a new “fund” is launched with a theme/challenge to address. Community members then propose means of addressing those challenges, which get assessed by their peers for feasibility. After this phase, people vote on the proposals.
5/ Voting

As Cardano is a Proof of Stake blockchain, everyone is encouraged to participate and be a stakeholder of the system

Votes for/against a proposal are counted depending on how much ADA is held in the wallet casting a vote. So it is unfortunately an oligarchy.
6/ Who can ask for funding?

Anyone with a pulse, though with the increasing competition on the platform, it’s advisable to have a sizable audience already, as it devolves into a popularity contest. New entrants still have a chance if they go for less competitive categories.
7/ Intellectual Property

A huge perk that should be highlighted compared to other more traditional funding methods is that you’re not required to let go of business equity or intellectual property

If you can get the votes, and fulfil your promises, there are no strings attached
8/ Process

In theory, there are 3 phases that each fund undergoes:

Innovation - Ideas are proposed, refined and reviewed by users
Governance - Users register their wallets, up/downvote proposals, and votes are tallied
Execution - Funds are paid out, and reviewed every month
9/ Good & Bad

I really like the idea of Catalyst, I think it will be one of our major advantages going forward. That said, in its current prototype phase there’s a lot that could be improved, or is downright concerning.

In the following tweets, we’ll mention some issues.
10/ Accountability

Despite what the marketing will have you believe, there’s a surprisingly little amount of policing so that the funds are properly used. Hence there is a strong potential for money to be mismanaged or just pocketed without further benefits to Cardano.
11/ Rich getting Richer

Whales, or people who are whale adjacent, can bring to bear so much capital as to outshine the efforts of users without the deep ties to the Cardano powers that be.

Whales can drain the fund dry and never give newbies a chance.
12/ Shady Actors

Occasionally, shady actors end up receiving funding as they apply with a lot of proposals and outwardly look OK.

By not being more selective, we end up potentially funding people who aren't great for the ecosystem, here's a thread:

13/ Lack of clear communication

The comms, guidelines, rules and documentation regarding Catalyst are either disorganized or nonexistent. So it’s often difficult to get a handle on details, as sources might contradict each other, don’t cover them, or are out of date.
14/ Success Stories

It’s easy to point to the failures of a project that is still in a prototype phase. But let’s not lose track of the fact that Catalyst has already had some major victories.

Minswap, Cardano’s biggest DEX, was initially funded by Catalyst.
15/ What next?

The next Catalyst round starts next month, and I fully intend on participating.

Hopefully, with a bit of luck and your support, some of my proposals get funded and I can dedicate more of my time to the Cardano community. Image
16/ Conclusion

Catalyst has problems, from being difficult to audit projects, promoting an oligarchy and having incomplete documentation

Yet, underneath it all, Catalyst is a powerful tool that shows a lot of promise and may yet be able to boost Cardano to new heights!
17/ Shilling

If you liked this, please consider giving a follow. I write one large thread a week, which looks at crypto from a completely different POV

I then convert these threads to full-blown articles with greater depth and evidence on Medium

medium.com/@flantoshi

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More from @flantoshi

Jun 19, 2022
Why Cardano isn't going to 0

[A Thread🧵]

#Cardano #CardanoADA $ADA #Cryptos
1/ Intro

At the time of writing, the crypto markets look worse than they have looked in a while. Crypto is likely, for the first time in its history, to experience an economic recession and increasing interest rates.

This has prompted critics to say that “crypto is dead!”
2/ The Apocalypse is happening

Now, I’m not gonna bullshit you, the markets are nuking and we’re in for a world of hurt. But the logical inference that because the price is lower it’s over for crypto, is a fundamental misunderstanding of the tech and its role in the economy.
Read 14 tweets
May 8, 2022
How to make the most out of a bear market

[A Thread🧵]

#CardanoCommunity #Cardano $ADA
1/Intro

Every macro indicator is screaming recession. The last decade of excess has come to an end and it’s time to pay the piper.

I cannot promise you’ll make money during these times, what I can do is to make tactical suggestions to maybe benefit from the situation.
2/ Background

The other week we covered why most people are not going to do well in this environment, and today we’ll discuss how to benefit from a bear market.

Read 19 tweets
Apr 26, 2022
You Are (Probably) Not Going to Make It - How to Survive a Bear Market

[A Thread🧵]

@conraddit @matiwinnetou @DeansEpoch @hans_the_crypto @cardano_whale @LatinStakePools
1/ Disclaimer

Sorry to the people I tagged on the thread, I don’t mean you specifically, or anyone else in the audience.

I’m sure you’re all lovely and smart people😳

I’m referring to the average Joe and his habits, how despite his best intentions, he might be destined to fail
2/ Intro

If you’re under 40 you have likely never been invested during a deep recession.

We all collectively believe we’re much better at making money than we really are, it’s just that until recently we’ve had the longest bull-run in recorded history.
Read 17 tweets
Apr 7, 2022
10 Reasons Why I Would Sell My #ADA

[A Thread🧵]

#Cardano @DeansEpoch @technologypoet @conraddit
1/Intro

ADA is an investment for me, it’s not a religion and it’s not the purpose of my life

ATM #Cardano accounts for 90% of my portfolio

For good or ill, there may be a moment when I feel the need to sell some or all of my holdings. This is an exploration of those scenarios
2/Reason 1: Nakamoto Coefficient goes down

This measure is a means of seeing how many entities control Cardano as a network. BTC started at 35, now it’s 5, ETH is 2

Cardano is at about 22, if it becomes comparable to BTC, or ETH, I’m out

(thanks to @matiwinnetou for charts)
Read 19 tweets
Mar 4, 2022
THREAD SUMMARY OF KRAKEN'S REPORT:

Sitting Tight - February 2022 Crypto On-Chain Digest

This report is an analysis of various on-chain metrics for #Bitcoin, #Ethereum and #Cardano which show a bearish trend for the markets and what its ongoing effects might be 0/6
Most important info 1/X
Throughout February, Crypto was going out of exchanges, which would imply people intended to HODL. Now though, exchanges are minorly receiving more crypto than is leaving, so people are more likely to sell their holdings. However, this trend is lessening with each passing day 2/X
Read 7 tweets
Feb 26, 2022
1⃣DISCLAIMER

Over 90% of my net worth is in ADA at the time of writing. I believe in the project enough to more or less work full-time on it.

That said, I believe anyone that invests in an asset should be able to play devil’s advocate against it if they really understand it.
2⃣ASS COVERING

I am going to be uncharitable in my assessment of both Cardano and its community. I don’t do this out of malice, but out of an attempt to temper some of the over-optimism native to Twitter that I’m sure has led people to overleverage and go bankrupt
Read 23 tweets

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