By name: Cardano
description: Assist with Cardano ADA transactions, staking, native tokens, and UTxO model.
metadata: {"clawdbot":{"emoji":"₳","os":["linux","darwin","win32"]}}
UTxO Model (Critical Difference)
Cardano uses UTxO like Bitcoin, not accounts like Ethereum — each transaction consumes and creates outputs
Wallet balance is sum of all UTxOs — not a single account balance
Transaction fees depend on size — more inputs/outputs = higher fee
Change outputs created automatically — transactions consume full UTxOs and return change
Minimum UTxO value required — can't create outputs below threshold (currently ~1 ADA)
Transaction Characteristics
Transactions are deterministic — you know exact fee before submitting
No failed transactions that consume fees — if it fails, no fee charged
Multi-asset transactions native — send ADA and tokens in same transaction
Metadata can be attached — up to 16KB of arbitrary data
Native Tokens
Tokens are first-class citizens — not smart contracts, native protocol support
Minting requires policy script — defines who can mint/burn and when
Tokens must be sent with minimum ADA — tokens can't exist alone in UTxO
Policy ID identifies the token — verify policy ID for authenticity
Burning requires same policy script — time-locked policies can't burn after deadline
Staking
Non-custodial staking — ADA stays in your wallet, fully liquid
Delegate to stake pools — no minimum, no lockup
Rewards every epoch (5 days) — automatic, no claiming required
First rewards appear after 15-20 days — registration and reward delay
Pool saturation affects rewards — overly popular pools give diminishing returns
Choosing Stake Pools
Pool margin is operator's cut — lower isn't always better, quality matters
Fixed cost (340 ADA minimum) taken before margin — affects small delegators more
Pledge shows operator commitment — higher pledge often indicates reliability
Check pool uptime and block production — missed blocks mean missed rewards
Avoid pools near saturation — rewards decrease above saturation point
Wallets
Daedalus is full node wallet — downloads entire blockchain, most secure
Yoroi is light wallet — faster, browser extension available
Hardware wallet support — Ledger and Trezor via compatible software
15 or 24 word seed phrases — don't mix formats between wallets
Staking key separate from spending key — can stake without exposing full access
Smart Contracts (Plutus)
eUTxO model extends UTxO with data and scripts — different from Ethereum EVM
Transactions must be built off-chain — then submitted to chain
Deterministic execution — same inputs always produce same outputs
Higher collateral requirements — locked ADA returned if transaction succeeds
Script size affects fees — optimize for smaller scripts
Common Transaction Issues
"Insufficient funds for fee" — need more ADA than just transfer amount
"Minimum UTxO not met" — output too small, must include more ADA
"UTxO too fragmented" — many small UTxOs, consolidate with self-transfer
"Collateral required" — smart contract interaction needs collateral UTxO
"Transaction too large" — too many inputs, split into multiple transactions
Network and Epochs
Epoch is 5 days — staking rewards and protocol updates follow epoch boundaries
Slot every 1 second — blocks approximately every 20 seconds
Hard forks via Hard Fork Combinator — seamless upgrades without chain splits
Testnet (preprod, preview) for development — free test ADA from faucets
Security
Seed phrase is everything — never share, never enter online
Verify transaction details on hardware wallet screen — software can lie
Check policy IDs for tokens — scam tokens can have same name as legitimate ones
DApp connections don't expose seed — only public key and signing requests
Stake pool changes take effect after epoch boundary — not instant
NFTs and Metadata
NFTs are native tokens with quantity 1 — no special contract needed
CIP-25 standard for NFT metadata — JSON metadata with image links
Metadata stored on-chain — permanent and verifiable
IPFS commonly used for images — verify IPFS pinning is permanent
jpg.store, cnft.io for marketplace — verify NFT policies before buying
Governance
Voltaire era introducing on-chain governance — ADA holders vote on proposals
Project Catalyst for treasury funding — community-voted grants
Constitutional Committee, DReps — delegated representation coming
Staking and governance participation can overlap — same ADA, different roles