Cardano (ADA) founder Charles Hoskinson strongly opposes the idea of a deflationary economy that has become quite popular in the crypto world. During a recent AMA session on Youtube, Hoskinson expressed his strong dislike for the idea of burning coins, comparing it to stealing food. He said that the proposal reflects people’s greed and stupidity, and continued:
“To us; We are very pleased that you can say that we need to destroy other people’s money so that you can make a little extra money and then sell the ADA and move on to something else.”
The token burn or deflationary token economy proposes removing a certain number of tokens from circulation to make existing tokens more valuable. Ethereum (ETH) is also the latest platform to join the deflationary token caravan after the London Hardfork and has already burned over $1 billion in Ether since the implementation of Eip-1559. In addition to ETH, Binance also burns its BNB supply every four months.
Despite the criticism and trolls leading up to the Cardano smart contract upgrade, Hoskinson is known as someone who always speaks his mind and never shuts up with anyone. The founder of Cardano, who has the same attitude in this regard; He said that if people wanted to burn their tokens so badly, they could do it easily, and urged the developers to create a “Proof-of-Burn” app that would allow users to send their ADA to an address to be destroyed. According to Hoskinson, through this application, those who want to burn their tokens without allowing others to adversely affect the burning will be free to do so.
Proof of Burn Challenge https://t.co/VD7E1wVb6P
— Charles Hoskinson (@IOHK_Charles) August 20, 2021
Just a week before the Alonzo upgrade, native token ADA hit a new high of $3.10, with many expecting the key update to act as a catalyst for the ADA price. However, as the bears continued to dominate September, the token price continued to decline after the hike. ADA is currently trading around 10.21 percent in the last 24 hours and must hold the key $2.0 support to avoid any further declines.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.