Here’s Why Cardano’s Charles Hoskinson Doesn’t Favor ADA Burn

Vignesh Karunanidhi
Here’s Why Cardano’s Charles Hoskinson Doesn’t Favor ADA Burn
Source: Crypto news Flash

The crypto communities of different projects have been looking for ways to increase demand, reduce supply and push the price higher. Such a thought paved the way for burning, where tokens would be sent to a dead wallet.

Dead wallets are left-alone wallets that are not owned by anyone. So literally, the tokens sent to that wallet are as good as gone. People expect this process to reduce the circulating supply, luring a price hike.

Charles Hoskinson, a co-founder of Cardano, has provided an explanation of why no ADA may be burnt in a tweet.

Cardano’s Hoskinson speaks about the problem in ADA burn

In a reply to a Twitter user, @PerAsperaVinco, Charles Hoskinson sheds his insights about ADA burns. The Twitter user took a hit at Charles Hoskinson and his ADA burn analogy with the following tweet:

“The astonishing power of ignorance is revealed when someone as intelligent as Charles Hoskinson believes burning coins is destroying someone’s property. The analogy isn’t even correct; it’s more like destroying part property to make the rest more valuable than the original.”

Hoskinson wrote by stating that Cardano doesn’t have a magic reserve of ADA. He also added all ADA is in the hands of actual people who are the owners of the ADA they possess. He explained that to burn ADA, it should be taken from the people and then sent to a dead wallet to burn it.

In another tweet reply to a Twitter user, Hoskinson spoke about other projects and how they carry out burns. He stated that some founders would have a premine of tokens under their control. Hoskinson also added that they even manipulate the price by destroying the price when there is less liquidity. He also stressed that Cardano doesn’t have such an amount of ADA under control.