Cardano creator Charles Hoskinson clarifies the crypto project’s stance on burning ADA to reduce supply
The creator of the smart contract platform Cardano (ADA) clears the air about the crypto project’s stance on burning tokens.
Responding to a social media user who had accused him of “ignorance”, Charles Hoskinson says burning coins is tantamount to destroying other people’s property.
Hoskinson says there are no ADA Reserves available to remove from circulation by sending them to an unusable wallet address.
“The astonishing power of ignorance is revealed when people cannot understand that there is no magical reserve of ADA floating around out there. All ADA is in the hands of owners, actual people, to burn it would require it to be taken from them and destroyed.”
According to Hoskinson, other crypto projects that regularly burn coins to reduce supply usually do so from pre-mined reserves of their respective digital assets, not from investors’ holdings.
“Usually there is a large pre-mine that the founders control and destroy to manipulate the price during periods of lower liquidity. ADA does not have this.”
In response to another social media user who suggested cutting Cardano’s stake rewards and burning that portion to reduce ADA’s supply, Hoskinson says that such an action would also amount to stealing from the ecosystem’s participants.
“That would be stealing from the ADA holders and stake pool operations. They earn these rewards.”
Cardano is trading at $0.45 at the time of writing, down less than a percentage point in the last seven days.
The crypto project has set a maximum supply ceiling of 45 billion, while the current supply is almost 34.3 billion.
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Featured image: Shutterstock/Jurik Peter/tanatpon13p
