{"id":66585,"date":"2022-09-01T12:09:42","date_gmt":"2022-09-01T09:09:42","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=66585"},"modified":"2025-09-07T02:05:45","modified_gmt":"2025-09-06T23:05:45","slug":"charles-hoskinson-explains-why-cardano-has-no-token-burn-mechanism","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/charles-hoskinson-explains-why-cardano-has-no-token-burn-mechanism\/","title":{"rendered":"Charles Hoskinson explains why Cardano has no token-burn mechanism"},"content":{"rendered":"<p>Unlike a number of other cryptocurrency projects, burning ADA tokens to create scarcity is impossible, as that would be &#8216;theft&#8217; of someone else&#8217;s property, said Cardano founder Charles Hoskinson.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">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 <a href=\"https:\/\/t.co\/kGzwFyg3nS\">https:\/\/t.co\/kGzwFyg3nS<\/a><\/p>\n<p>\u2014 Charles Hoskinson (@IOHK_Charles) <a href=\"https:\/\/twitter.com\/IOHK_Charles\/status\/1565003735700422657?ref_src=twsrc%5Etfw\">August 31, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He replied to a user who reproached him for ignorance. A commenter going by PerAsperaVinco argued that destroying part of the ownership increases the value of what remains.<\/p>\n<p>In the discussion, Hoskinson explained that some other projects have a team-controlled reserve of tokens.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;There are usually a few large premines that the founders control and destroy to manipulate the price during periods of lower liquidity. ADA does not have this,&#8221; he wrote.<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Usually there is some large premine that the founders control and destroy to manipulate the price during periods of lower liquidity. Ada does not have this<\/p>\n<p>\u2014 Charles Hoskinson (@IOHK_Charles) <a href=\"https:\/\/twitter.com\/IOHK_Charles\/status\/1565004799984095233?ref_src=twsrc%5Etfw\">August 31, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to Hoskinson, all ADA tokens belong to their holders and to the operators of staking pools. They receive rewards in the coin, and taking ADA away from them to burn would be nothing other than theft of property, the Cardano founder stressed.<\/p>\n<p>In the Ethereum network, the mechanism for burning coins as a portion of transaction fees was activated in August 2021 during the <a href=\"https:\/\/forklog.com\/en\/news\/ethereums-london-hard-fork-goes-live\">London hard fork<\/a>.\u00a0<\/p>\n<p>As of writing, the total number of burned tokens <a href=\"https:\/\/ultrasound.money\/\">\u043f\u0440\u0435\u0432\u044b\u0441\u0438\u043b\u043e<\/a> 2.6 million ETH. According to forecasts, after the <a href=\"https:\/\/forklog.com\/en\/news\/the-merge-what-to-expect-from-ethereums-largest-update\">The Merge<\/a> and the transition to the <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-proof-of-work-pow-algorithm\">Proof-of-Stake<\/a> algorithm, the network will become deflationary.<\/p>\n<p>One commenter reminded that, technically, Ethereum&#8217;s issuance is not capped. ADA, by contrast with Bitcoin, has a cap on the coin&#8217;s circulating supply, he noted.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Also Eth, for example, doesn\u2019t have a total supply and you could technically \u00abprint\u00bb Eth forever, so a burning mechanism kind of makes sense there. ADA has a total supply like btc, a very different animal.<\/p>\n<p>\u2014 Lnnrt0 (@lnnrt0) <a href=\"https:\/\/twitter.com\/lnnrt0\/status\/1565011202727706625?ref_src=twsrc%5Etfw\">August 31, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Cardano <a href=\"https:\/\/forklog.com\/en\/news\/cardano-edges-bitcoin-in-global-brand-ranking\">outranked Bitcoin<\/a> in the global brands ranking, taking 26th place. Bitcoin, the digital gold, was 30th.<\/p>\n<p>Read ForkLog&#8217;s bitcoin news in our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 crypto news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlike a number of other cryptocurrency projects, burning ADA tokens to create scarcity is impossible, as that would be &#8216;theft&#8217; of someone else\u2019s property, said Cardano founder Charles Hoskinson.<\/p>\n","protected":false},"author":1,"featured_media":66586,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1401,471],"class_list":["post-66585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cardano-ada","tag-charles-hoskinson"],"aioseo_notices":[],"amp_enabled":true,"views":"35","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/66585","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=66585"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/66585\/revisions"}],"predecessor-version":[{"id":66587,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/66585\/revisions\/66587"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/66586"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=66585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=66585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=66585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}