<p>All ADA has already been minted. Technically it was all minted in the first block. The stake pool payouts come from the reserves and transaction fees.</p>

CC BY-SA 4.0
2021-04-30T21:44:06.527Z
not the treasury, the "reserves". See [page 2 of the ledger spec](https://hydra.iohk.io/build/6173902/download/1/ledger-spec.pdf). The treasury is for funding the development of Cardano, not for rewards payouts.
EGMSSE
CC BY-SA 4.0
2021-05-01T00:18:20.397Z
Thanks for the clarification.
nalyd88
CC BY-SA 4.0
2021-05-01T03:58:13.237Z
@EGMSSE is someone "in charge" of the reserves? who or what decides what and how much comes out of them? is it all just managed by the protocol?
desolate_mountain
CC BY-SA 4.0
2021-05-01T04:48:16.467Z
@desolate_mountain Right now, IOHK is managing these variables until the release of [governance](https://cardano.org/governance/) where users will be able to vote to change variables in the protocol. Also you can check out this infographic here: https://i.redd.it/wbmip3szxeg61.jpg to see how rewards are being paid out.
Ahmedie-m
CC BY-SA 4.0
2021-04-30T21:01:13.477Z
2021-05-01T00:18:10.793Z
2021-05-01T00:18:10.793Z
nalyd88
<p>In a Proof-of-Work protocol, a certain amount of the blockchain's native coin is issued with the minting of a new block as a way to reward miners for their efforts and involvement in the network. As far as I know, though, no coins exist prior to the creation of the genesis block, and after this point, new coins begin to be issued at some rate.</p>
<p>How does this work in a Proof-of-Stake protocol? How does the issuing of new ADA work in Cardano? Was there a certain number of ADA created at the beginning? Or has the 31.9B ADA currently in circulation (out of the 45B max total) all been a product of stake pools forging new blocks?</p>

<ada><mint><proof-of-work><proof-of-stake>
How is new ADA created?
# How is new ADA created?

(Asked by: username_0 on 2021-04-30)

In a Proof-of-Work protocol, a certain amount of the blockchain's native coin is issued with the minting of a new block as a way to reward miners for their efforts and involvement in the network. As far as I know, though, no coins exist prior to the creation of the genesis block, and after this point, new coins begin to be issued at some rate.

How does this work in a Proof-of-Stake protocol? How does the issuing of new ADA work in Cardano? Was there a certain number of ADA created at the beginning? Or has the 31.9B ADA currently in circulation (out of the 45B max total) all been a product of stake pools forging new blocks?

**Tags:** ada, mint, proof-of-work, proof-of-stake

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## 1 answers

### Answer by username_1 on 2021-04-30. Score: 8 | Accepted answer

All ADA has already been minted. Technically it was all minted in the first block. The stake pool payouts come from the reserves and transaction fees.

> **Comments:**
> **username_2**: not the treasury, the "reserves". See [page 2 of the ledger spec](https://hydra.iohk.io/build/6173902/download/1/ledger-spec.pdf). The treasury is for funding the development of Cardano, not for rewards payouts.  
> **username_1**: Thanks for the clarification.  
> **username_0**: @EGMSSE is someone "in charge" of the reserves? who or what decides what and how much comes out of them? is it all just managed by the protocol?  
> **username_3**: @desolate_mountain Right now, IOHK is managing these variables until the release of [governance](https://cardano.org/governance/) where users will be able to vote to change variables in the protocol. Also you can check out this infographic here: https://i.redd.it/wbmip3szxeg61.jpg to see how rewards are being paid out.  

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