Cardano’s founder, Charles Hoskinson, is pushing back against calls to burn ADA, the network’s native cryptocurrency. He argues that doing so would be harmful to the Cardano ecosystem and its stakeholders.
Hoskinson’s stance has since sparked a debate within the Cardano community, with some advocating for a burn of 1.5 billion ADA to increase scarcity and drive value. Others supported Hoskinson, emphasizing that the Treasury is meant to fund development and stability.
Cardano Founder Rejects ADA Burning Proposals
The Cardano community has always been divided over the concept of burning ADA with the belief that it may in turn help to increase its value by reducing the overall supply. However, Hoskinson has been taking a diametrically opposite approach in terms of this subject all along. His most recent comments came in response to renewed calls for the Cardano Treasury to adopt a burn mechanism as the network transitions into the Voltaire Era.
Hoskinson explained that the Treasury is not a mere collection of pre-printed tokens that emerged from nowhere. Instead, it was built from a tax on block production and transactions. This means that the Treasury funds are …
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