Cardano Founder Explains Why ADA Can’t Burn Despite Constant Requests From Some in the Community
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- This is why no ADA can be burned
- SHIB Army regularly burns tokens
Cardano and IOG founder, Charles Hoskinson, tweeted that unlike other cryptocurrency projects, ADA is impossible to burn.
He said that “ADA has no magic reserves” that can be burned.
This is why no ADA can be burned
Charles Hoskinson has responded to a comment from a Twitter user @PerAsperaVinco, with the latter rebuking him for being ignorant when he said that destroying ADA would mean destroying the assets of Cardano fans.
Hoskinson explained that other projects sometimes have reserves of prefabricated coins controlled by the founders. They manipulate the price of their tokens to a great extent during periods of low liquidity. However, he stressed that Cardano does not control any amount of ADA.
The astonishing power of ignorance is revealed when people do not understand that there is no magic store of grace floating there. All Ada is in the hands of the owners, real people, have to take it from them to burn it and destroy https://t.co/kGzwFyg3nS
— Charles Hoskinson (@IOHK_Charles) 31 August 2022
According to him, all ADA tokens belong to ADA holders and SPOs (Stake Pool Operators). They earn rewards in Ada, Hoskinson reminded, and taking Ada away from them for burning would be nothing more than stealing their property.
Burning means sending tokens to a dead-end wallet and locking them there so that they cannot be spent or withdrawn.
There are usually a few large bases that the founders control and destroy to manipulate the price during periods of low liquidity. Ada doesn’t have it
— Charles Hoskinson (@IOHK_Charles) 31 August 2022
SHIB Army regularly burns tokens
Unlike Cardano, the SHIB community conducts multiple burns of its meme tokens, some destroying Shiba Inu on a weekly basis, some doing it periodically. One burner has started buying SHIBs through an Amazon affiliate program and later burned them.
According to data provided by Shibburn Tracker, the amount of meme tokens destroyed can sometimes reach billions per week. The goal of these burns is to reduce the circulating supply of tokens to make them more scarce and in an attempt to drive up the price.