Charles Hoskinson clarifies the situation regarding Cardano’s (ADA) “Token burn”


What is the use of a token stream? This technique consists of “burning” cryptocurrencies in a conscious and irreversible way. Concretely, this means reduce the number of properties in circulation to reduce the number available.

The “two tokens” are therefore against mining which increases the number of tokens available. The goal is to increase the scarcity of cryptocurrency and it simply refers to the famous law of supply and demand. Therefore, by reducing the number of properties, we increase the chances of increasing its course and value.

A clear position regarding the continuation of the ADA project

The creator of the ADA was trying to be positive by answering questions from disgruntled Internet users after the unjustified delay of Vasil’s update.

On social networks, a user accused the creator of the ADA of ignorance and wanted the ADA to burn signs. Charles Hoskinson answered that “Burn” signs are equivalent to destroying other people’s property. Some people did not hesitate to mock this suggestion on Twitter.

Hoskinson says yes‘there are no ADA reserves available to withdraw tokens from circulation and send them to a dead wallet ( technique (“token burn”).

He added: “The incredible power of ignorance is revealed when people cannot understand that there is no magic pool of ADA floating in front of us. The ADA is all in the hands of the owners, real people, to burn it you have to take it from them and destroy it.

According to Charles Hoskinson, other cryptocurrency projects that practice “token burn” do so with pre-sworn reserves. Hence investors’ wallets are not affected since they do not own the deleted tokens.

Crypto founder ADA says: “Usually there is a big pre-mine that controls and destroys the founders to manipulate the price during periods of low liquidity. ADA does not have this reserve.”

Another netizen suggested him to reduce ADA reward and burn that part to reduce ADA supply. Hoskinson answered thatSuch an action would also steal participants and weaken the project’s ecosystem.

Cardano is trading today (September 2) at €0.45, and has risen a very small 0.08% in the last 24 hours. As for the cryptocurrency supply cap, it is set at a maximum value of 45 billion dollars although its current supply is 34.3 billion.

A “hard fork” planned for September

Vasil’s hard fork is expected to come in September and could help ADA out of its crisis period. In fact, since the peak of September 2021 when the currency reached €2.42, the price has fallen 84.8% to €0.45 today.

Among the new items of the update, there will be a significant reduction in transaction costs according to Hong Kong Input Output. In addition, the blockchain will be strengthened by being more secure than ever before.

This announcement should reassure investors since the previous update had bugs that weakened the cryptocurrency for the past 2 weeks.

Le Bitcoin de retour vers les 23 00 dollars ?

Bitcoin back to $2300?

Die Höhle der Löwen

The Lion’s Den: Widespread Bitcoin Scams