THE PROPOSAL TO BURN 1.5 billion ADA from Cardano's treasury is a strategy that could, in theory, increase the price in the short term, due to the reduction in circulating supply, which would lead to greater scarcity. However, this approach has its risks.
👎🏼 I do not support this measure, and here is why:
1. Long-term vision: The treasury is a key resource for the continued development of the network, funding projects, and promoting improvements. Burning this fund reduces Cardano's ability to continue evolving, which could compromise its long-term competitiveness.
2. Ecosystem sustainability: The value of ADA depends not only on immediate supply and demand, but on the utility generated around the network. Maintaining a strong treasury allows for innovation, attracting developers, and improving infrastructure.
3. Speculative impact: While the burn could lead to a short-term price increase, this would be primarily a speculative boost. If the market perceives that Cardano is sacrificing its ability to improve and grow, enthusiasm for ADA could quickly dissipate.
In short, while there might be a temporary benefit to the price, in the long run it is more beneficial for Cardano to hold the treasury and continue developing the ecosystem, in line with Hoskinson's vision.
