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Charles Hoskinson Says Burning ADA Would Mean Stealing It from Holders, Here’s Why

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Wed, 31/08/2022 - 18:15
Charles Hoskinson Says Burning ADA Would Mean Stealing It from Holders, Here’s Why
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Founder of Cardano and IOG, Charles Hoskinson has tweeted that unlike with other cryptocurrency projects, ADA burns are impossible to make.

He stated that “there is no magic reserve of ADA” which could be burned.

Here’s why no ADA can be burned

Charles Hoskinson has replied to a comment from a @PerAsperaVinco Twitter user, in which the latter reproached him of being ignorant when saying that destroying ADA would mean destroying Cardano fans’ property.

Hoskinson explained that other projects sometimes have a stash of premined coins controlled by founders. During periods of lower liquidity they manipulate their token’s price by burning large amounts of it. However, he stressed that Cardano does not control any amounts of ADA.

All ADA tokens, according to him, belong to ADA holders and SPOs (Stake Pool Operators). They earn rewards in ADA, reminded Hoskinson, and taking away ADA from them to burn would be nothing but stealing their property.

Burning implies sending tokens to dead-end wallets and locking them there so that they cannot be spent or withdrawn.

Related

SHIB army burns tokens regularly

Unlike Cardano, the SHIB community conducts numerous burns of their meme token, some destroy Shiba Inu on a weekly basis, some do it from time to time. One burner has even started buying SHIB via an Amazon affiliate program and burning them afterwards.

According to data provided by Shibburn tracker, sometimes the amount of destroyed meme tokens can reach billions per a single week. The goal of these burns is to reduce the circulating supply of tokens in order to make them more scarce and attempt to push the price up.

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