The price of ADA moves up and down after the SundaeSwap launch, initially starting with excitement around the launch but then following the downtrend of Bitcoin as we can see further in our latest Cardano news.
ADA’s price has been up around 10% in the past week tied to the launch of Cardano’s beta version of the first decentralized app SundaeSwap which allows token staking and aims to decentralize the access to financial services but also the core business model itself:
“We are launching with a Beta label because, while the DEX’s smart contracts have been fully audited and the DEX will meet all industry standards for security, the implementation of fully decentralized governance will not be immediately possible due to existing transaction size limits on the Cardano blockchain.”
The launch of Sundaeswap entails the inclusion of the utility token SUNDAE which offers holders the availability to vote on the governance protocol but also to trade and lend coins. The tokens’ price will be determined by the community as they prove their goals towards decentralization:
“The Sundae Token is a utility token central to the healthy operation of the SundaeSwap DEX. We are focused on building the most useful decentralized exchange protocol we can, in line with the decentralized ethos that we all believe in. As part of that, we strongly believe that this protocol doesn’t belong to us, the company who wrote the software, but to us, the whole SundaeSwap community.”
About 7% of the community supply of the token will be locked by the DAO in a smart contract dubbed The Taste Test and added that when 10 days end, all of the tokens will be used to create the ADA/Sunday liquidity pool and will establish an initial price for the token. Not long after the trading started, the users were dissatisfied with the congestion on the net and the orders were pending for hours with all transactions failing. SundaeSwap’s team already warned about this possibility right before the launch.
However, the price of ADA moves up and down after the launch and its roadmap is focusing on a few updates to optimize the scaling of the network with goals to make tranactions faster and to adopt the layer 2 Hydra solution. Its parent company even announced a new scaling update that is supposed to increase Plutus script memory units per transaction with the first change happening on January 25th.
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