The Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), has unveiled sustainability metrics for the Cardano network designed to comply with the upcoming Markets in Crypto-Assets (MiCA) regulation in the European Union. This significant release, dated July 2, aligns with MiCA’s directive for crypto asset issuers and service providers to disclose sustainability indicators. The Cardano Foundation, overseer of the ADA cryptocurrency, partnered with CCRI to ensure robust blockchain monitoring and data collection methodologies.
According to the foundation, Cardano operates on a highly energy-efficient consensus protocol, consuming markedly less electricity compared to proof-of-work protocols. The report includes details on the network’s total annualized electricity consumption, carbon footprint, and marginal power demand per transaction per second. These metrics are crafted in accordance with the draft regulatory technical standards proposed by the European Securities and Markets Authority.
CEO Frederik Gregaard emphasized to Cointelegraph the foundation’s commitment to developing MiCA-compliant sustainability indicators. This move aims not only to ensure adherence to impending EU regulations but also to establish a benchmark for the broader crypto industry. Gregaard noted the urgency of industry compliance with the evolving regulatory landscape, citing a six-month countdown to implement essential ESG binding requirements under MiCA.
He highlighted blockchain’s potential to address ESG concerns, particularly environmental impacts, through transparency and operational efficiency. The initial phase of MiCA regulations, effective from June 30, initially focuses on stablecoins, with further regulations affecting crypto asset service providers slated for introduction in December. These developments will impact ecosystems like Cardano significantly.
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