What is Cardano?

What is Cardano?

Cardano is a blockchain for transferring digital assets and running apps. ADA is its native crypto-asset; it pays network fees and can take part in staking and governance. Suppose an organiser issues a digital ticket. The ticket can change owner in Cardano's ledger, while an app can add rules about how it is sold or used. A distinctive feature is that user-created assets can be handled directly by the ledger. Issuing and moving the ticket does not require a separate smart contract just to represent the asset.

Apps can still use smart contracts for more involved rules. The difference between a ledger-held asset and an app's rules helps explain Cardano's design. It also separates the ticket from ADA, the network's own crypto-asset.

What does ADA do?

Fees are paid in ADA when a transaction uses the network. Cardano uses proof of stake to select participants that produce blocks. An ADA holder can delegate to a stake pool while keeping the ability to use the ADA; the pool operator performs the block-production work. ADA holders can also vote or delegate voting power in network decisions.

These are three different roles: paying for a transfer, supporting block production and taking part in governance. Whether an app's ticket is useful does not itself decide ADA's price.

ADA directly or through an ETP

Direct ADA can pay fees and participate in network functions, with a wallet or chosen custodian. Virtune Staked Cardano ETP instead gives ADA price exposure through a security. It is physically backed with ADA held as collateral; the investor owns the ETP, not ADA in a personal wallet. Cardano ETP access covers the Stockholm and Helsinki listings and the ADA reward allocation.

The staking explainer describes the network mechanism and how staking is managed within a product. Under its Final Terms, investors receive up to 75% of staking rewards, capped at an annual rate of no more than 2% before the investor fee. The limit is a cap; actual rewards may be lower or absent. Rewards vary and are added within the product rather than paid to an account as interest.

Costs when buying Virtune Staked Cardano ETP

Cost	Charged by	When
Brokerage commission	Broker	On every purchase and sale
Difference between bid and ask price	Market	On every trade
Management fee, 1.49% per year	Issuer	Ongoing, from the product's value
Currency conversion	Broker, if applicable	If the product trades in another currency

Risks to understand

ADA can lose value even when network use grows. Staking rewards may vary or not arise and need not offset a price fall. Direct holding requires wallet or custody decisions; the ETP adds issuer, custody and exchange-trading risks.