Charles Hoskinson said that unlike other cryptocurrency projects, it is impossible to burn ADA.
Cardano founder Charles Hoskinson said that Cardano does not hold a certain amount of ADA and therefore this type of burn cannot be carried out.
Charles Hoskinson Says ADA Burning Is Impossible
Charles Hoskinson responded to the criticism leveled against him by saying that burning the ADA would mean destroying the property of Cardano defenders.
Hoskinson said that other cryptocurrency projects sometimes have pre-made tokens controlled by the founders. These projects aim to manipulate the value of the asset by burning large amounts of tokens during periods of low liquidity. According to Hoskinson, Cardano does not have such a presence.
Usually there is some large premine that the founders control and destroy to manipulate the price during periods of lower liquidity. Ada does not have this
— Charles Hoskinson (@IOHK_Charles) August 31, 2022
According to Hoskinson, all ADA tokens belong to ADA holders and SPOs (Stake Pool Operators). Reminding that users have won awards from ADA, Hoskinson emphasized that burning ADA would mean stealing users’ property.
Burning tokens means sending tokens to wallets where they cannot be spent and withdrawn and locked them up.
Unlike Cardano, the Shiba Inu community frequently burns tokens. Some community members perform SHIB burning periodically.
According to Shibburn’s data, the amount of tokens burned can sometimes reach billions in a week.
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