- The Cardano mainnet will get upgraded to Goguen.
- Goguen upgrade features a token lock system.
Consequently, the platform will gain new features. These features will enable traders and investors in ADA to experience a new level of trading.
Token locking is one of the many features of the integration of Goguen. This system is a way of recording how the token is used for some purpose. It also enables token holders to lock their token for a certain period of time to earn profits. By doing so, the tokens are safe and cannot vote or run a smart contract.
Furthermore, the token system also enables complex smart contracts and supports certain conditions. To make it easier to understand, IOHK explained:
When someone enters into a contractual agreement to sell a house, a promise is made by the vendor that this house won’t be sold to another person. So, the token can represent the house in this case, whereas the ‘promise’ will be the actual token locking.
In this case, if any third party buys the house, it will automatically break the agreement. The vendor must accept the penalty for dishonoring the agreement. This is the same thing that the investors have to face if they fail the contract.
Interestingly, Cardano maintains its ranking among the top 10 cryptocurrencies in CoinGecko. However, this ranking is not permanent and might change if the market turns against the crypto. Today, the crypto trades at a high price of $0.1622 with a growth rate of +60.8% in the last 30 days.