Charles Hoskinson: This is Why Cardano Does Not Have a Token Burning Mechanism

Reading Time: < 1 minute

Unlike other cryptocurrency projects, burning ADA tokens to create scarcity is not possible, as it would be “theft” of someone else’s property, Cardano founder Charles Hoskinson has said.

He said this in a reply to a user who rebuked him for his ignorance. According to a commentator named PerAsperaVinco, the destruction of part of the property increases the value of the rest.

Hoskinson has clarified during the discussion that some other projects have a team-controlled pool of tokens.

He wrote:

“Usually there is some large premine that the founders control and destroy to manipulate the price during periods of lower liquidity. Ada does not have this.”

Hoskinson has said that all ADA tokens are owned by their holders and staking pool operators.

If you like our content and want to support us, please follow us on Twitter, Facebook and Instagram and don’t miss the latest news!