Cardano founder explains why ADA burns cannot be done despite persistent requests from some in the community
Cardano and IOG founder, Charles Hoskinson, tweeted that unlike other cryptocurrency projects, ADA is impossible to burn.
He stated that “there is no magic reserve of ADA” which could 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 a stash of premined coins controlled by founders. During periods of lower liquidity they manipulate their token’s price by burning large amounts of it. However, he stressed that Cardano does not control any amounts of ADA.
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Burning implies sending tokens to dead-end wallets and locking them there so that they cannot be spent or withdrawn.
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, sometimes the amount of destroyed meme tokens can reach billions per a single week. The goal of these burns is to reduce the circulating supply of tokens in order to make them more scarce and attempt to push the price up.
