Cardano founder asks why proponents of ADA token burn are “consumed with idiocy” Samuel Wan · 1 year ago · 2 min read
Charles Hoskinson blasts the idea of ADA burning, calling advocates of the practice ignorant and short-termist.
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
In a community dispute over Cardano token burning, Input Output CEO Charles Hoskinson re-asserted his view that the practice is worthless.
Speaking in a disparaging yet playful tone, the Cardano founder implored advocates of the practice to deeply consider their life choices and ask themselves why they are “consumed with idiocy and avarice.”
He continued by saying that once coming to the realization burning is a fruitless endeavor, proponents of the idea should “beg for forgiveness” for proposing to destroy the community’s money.
“After you’re done with, I want you to come back, and only after you’ve reached a new level of clarity and insight, then beg for forgiveness from the entire Cardano community for suggesting to destroy their money.”
Token burning is destroying someone’s property
Since June 13, Cardano has been caught in a tight trading range between $0.40 and $0.59. As a solution, some in the community have suggested a token burn to increase scarcity and trigger a price spike.
In rallying support for the idea, @PerAsperaVinco dismissed the argument that burning ADA tokens is the same as destroying someone’s property.
“The analogy isn’t even correct; it’s more like destroying part property to make the rest more valuable than [the] original.“
However, Hoskinson made it clear that there “is no magic reserve of Ada floating” around. And that burning tokens would require token holders to destroy their own stack or for tokens to be confiscated.
The astonishing power of ignorance is revealed when people cannot grasp that there is no magic reserve of Ada floating out there. All Ada is in the hands of owners, actual people, to burn it would require it be taken from them and destroyed https://t.co/kGzwFyg3nS
— Charles Hoskinson (@IOHK_Charles) August 31, 2022
Token burning is not the Cardano way
The concept of burning ADA has been floated on numerous occasions in the past. Last November, Hoskinson addressed the topic, saying a burn would not achieve what proponents want.
Similar to his recent comments, the Cardano founder said burning ADA means someone else will lose out. Furthermore, token burning is not built into the tokenomics of the ecosystem. Nor is it conducive to the project’s approach to blockchain – which is the incorporation of stability.
“You’re destroying the integrity of the entire cryptocurrency’s monetary policy by tinkering with the monetary policy that was set years ago and that social contract is built by four years of purchasing decisions of people entering the ecosystem.”
With that, true to Cardano’s philosophy, Hoskinson said, fundamentals and solving real-world problems always beat short-lived gimmicks.
Posted In: Cardano, People, Technology
Author
Analyst at CryptoSlate
Samuel Wan, a finance professional turned full-time crypto content creator, values individual autonomy and personal freedom in his pursuits.
Latest Cardano Stories
Latest Press Releases View All
Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.
Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
As an enthusiast deeply immersed in the world of blockchain and cryptocurrency, I bring a wealth of firsthand expertise and a profound understanding of the intricate dynamics of decentralized technologies. My extensive knowledge encompasses various blockchain projects, their underlying technologies, and the evolving trends within the crypto space. Now, diving into the specifics of the article about Charles Hoskinson's critique of Cardano token burning, let's break down the key concepts involved.
1. Cardano Token Burning: Charles Hoskinson, the founder of Cardano and CEO of Input Output (IOHK), vehemently opposes the idea of burning ADA tokens. Token burning is a process where a portion of the cryptocurrency tokens is intentionally removed from circulation, aiming to increase scarcity and potentially influence the token's price.
2. Community Dispute: The article highlights a community dispute over the concept of Cardano token burning. Charles Hoskinson, in a disparaging yet playful tone, criticizes advocates of token burning, referring to the practice as worthless.
3. Hoskinson's Critique: Hoskinson questions the rationale behind the support for ADA token burning, calling proponents ignorant and short-termist. He urges them to reconsider their choices and implies that the idea is both foolish and driven by avarice.
4. Purpose of Token Burning: Some members of the Cardano community suggest token burning as a solution to the tight trading range of ADA between $0.40 and $0.59. The idea is to increase scarcity and trigger a price spike, potentially benefiting token holders.
5. Hoskinson's Argument Against Token Burning: Hoskinson argues that there is no magical reserve of ADA and that burning tokens would require them to be taken from token holders and destroyed. He emphasizes that all ADA is in the hands of actual people, and burning would mean confiscating or destroying their assets.
6. Token Burning vs. Cardano Philosophy: Hoskinson asserts that token burning goes against the Cardano way, emphasizing that it would destroy the integrity of the entire cryptocurrency's monetary policy. He argues that tampering with the established monetary policy undermines the social contract built over years of purchasing decisions within the ecosystem.
7. Cardano's Approach to Blockchain: The article mentions that token burning is not conducive to Cardano's approach to blockchain, which focuses on stability and incorporates a long-term perspective. Hoskinson stresses that fundamentals and solving real-world problems should take precedence over short-lived gimmicks.
In conclusion, the article provides insights into the ongoing debate within the Cardano community regarding the concept of token burning, with Charles Hoskinson expressing strong reservations and offering a perspective aligned with Cardano's philosophy.
