Charles Hoskinson Dispels Cardano Network ADA Burning Rumors
There have been a lot of rumors lately about the plan to burn ADA. But as Hoskinson explains, ADA burning is an unsolvable problem and it will certainly fall short of the expectations of those who want it.
Why is burning ADA from Cardano not feasible?
In creating the open report on the burning of ADA, Hoskinson was clearly angry and indicated that burning ADA would put everyone at a disadvantage. In addition, the concept of token burning is not integrated into Cardano’s tokens.
“Why do people think it’s possible to burn ADA? It is not feasible. I have an ADA number, you have an ADA number. In order to incinerate ADA, one must forcibly confiscate ADA from someone and destroy it. “
Regarding the possibility of developers integrating token burning into Cardano’s tokenomics, Hoskinson dismissed the idea, saying it was the opposite of what Cardano was about – stability.
He wondered why anyone would want to intervene in monetary policy without understanding why people think ADA burning is possible or the reasons why it would be desirable.
“You are trying to destroy the integrity of the entire monetary policy of cryptocurrencies by changing the policy established many years ago, built with four years of buying decisions by humans. Join the ecosystem.”
Hoskinson believes more in fundamentals than short-term gains
Typically, token burn advocates expect increased scarcity that will drive the price higher. But Hoskinson countered with an example from Stellar, which showed that this doesn’t work.
As mentioned many times in this AMA, Hoskinson believes that obsession with prices is the wrong view.
Speaking of the top 10 coin memes, Hoskinson said that protocols that follow the path of gimmicks and hypes rarely have long-term success.
“First of all, they are rarely successful in the long run and also look like the Bitconnect guys, and secondly, the market is very fickle.”
Instead, projects with a long-term future are committed to a mission based on developing problem solutions.
“You have a real answer to utility and utility. Why is that thing here? What is the purpose of this thing? “
While burning tokens may seem like a quick fix to encourage price movement, this is not the route Cardano has chosen.
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According to Cryptoslate