Cardano founder Charles Hoskinson said that unlike many other cryptocurrency projects, it is not possible to burn ADA tokens to create scarcity because it would be a “stealing” of someone else’s property.

The startling power of ignorance is revealed when people fail to grasp that the Island has no magic reserve floating there. It is in the hands of all Island owners, natural persons, to burn it must be taken from them and destroyed https://t.co/kGzwFyg3nS

— Charles Hoskinson (@IOHK_Charles) 31 August 2022

He replied to a user who scolded him for his ignorance. According to a reviewer named PerAsperaVinco, destroying part of the property increases the value of the rest.

Hoskinson explained during the discussion that several other projects have a team-controlled token pool.

“Usually, there are several major premises that founders control and destroy to manipulate price during periods of low liquidity. The ADA does not have that,” he wrote.

Usually, there are some major antecedents that the founders control and destroy to manipulate the price during periods of lower liquidity. This is not on the island

— Charles Hoskinson (@IOHK_Charles) 31 August 2022

According to Hoskinson, all ADA tokens belong to their holders and stake pool operators. The founder of Cardano emphasized that they were rewarded with a coin and that it would be nothing more than property theft if they took their ADA to burn.

On the Ethereum network, the coin burn mechanism as part of transaction fees was activated in August 2021 during the London hard fork.

At the time of writing, the total number of liquidated tokens has exceeded 2.6 million ETH. It is estimated that the network will go into deflation mode after The Merge is updated and switched to the Proof-of-Stake algorithm.

One of the commenters reminded that Ethereum is technically unlimited. The ADA noted that similar to bitcoin, the coin has a limit on its market supply.

Also, for example, Eth has no total supply, and you can technically “print” Eth forever, so a burn mechanism there makes sense. ADA has total supply, as does btc, which is a very different animal.

— lnnrt0 (@lnnrt0) 31 August 2022

Recall that Cardano ranks 26th in the global rankings of brands, bypassing Bitcoin. Digital gold was ranked 30th.

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