Charles Hoskinson explained the absence of tokens in Cardano in Cardano

Charles Hoskinson explained the absence of tokens in Cardano in Cardano

Unlike a number of other cryptocurrency projects, the burning of ADA tokens is impossible to create a deficit, since it will be a “theft” of someone else’s property, said Cardano founder Charles Hoskinson.

He answered the user who reproached him for ignorance. According to the commentator under the nickname of PERASPERAVINCO, the destruction of part of the property increases the value of the remaining.

Hoskinson during the discussion explained that some other projects have a reserve of tokens controlled by the team.

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

According to Hoskinson, all ADA tokens belong to their holders and operators of staying pools. They receive a reward in the coin and take away the ADA from them for burning will be nothing more than theft of property, the founder of Cardano emphasized.

On the Ethereum network, the coin burning mechanism in the form of a part of transaction commissions was activated in August 2021 during the London hard fork.

At the time of writing, the total number of liquidated tokens exceeded 2.6 million ETH. According to the forecast, after updating The Merge and the transition to the Proof-OF-Stake algorithm, the network will become deflation.

One of the commentators recalled that technically the Ethereum emission is not limited. ADA, by analogy with bitcoin, has a coin market offer limit, he said.

Recall, Cardano went around Bitcoin in the ranking of global brands, taking 26th place. Digital gold turned out to be 30 positions.

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