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Cardano's long-term security depends on growing transaction fees as reserves and Treasury funds decline.

Protocol Fundamentals
16 Jun 2026
Blockonomi
View Source
Bearish
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Cardano faces a funding challenge as its reserve has dropped from ₳13.3 billion to about ₳6.3 billion, and Treasury funds have fallen from ₳1.82 billion to ₳1.49 billion. Current transaction fees generate about ₳3.6 million yearly, far below the estimated ₳200 million needed to support infrastructure and staking rewards. DRep Jaromir Tesaf warns that for Cardano to maintain network security, transaction fees must significantly increase within the next 5 to 10 years to replace declining reserve subsidies. Without this growth in fee revenue, Cardano risks budget shortfalls that could impact development and maintenance efforts.

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