Hoskinson slams proposal to burn 1.5 billion Cardano’s ADA tokens
Charles Hoskinson, founder of Cardano, opposes burning over 1.5 billion ADA treasury tokens valued at approximately $500 million. He argues that these tokens were generated through block production and transactions, and burning them would equate to theft from Stake Pool Operators (SPOs) and ADA holders. His comments follow calls for burning the tokens after Cardano's recent integration of decentralized governance. The first phase of the Chang hard fork was completed on September 1, enabling token-based governance. Community discussions have emerged regarding the potential burning of treasury assets, with mixed reactions. Some believe burning could positively impact ADA's price, while others caution against it. Jaromír Tesař, a decentralized representative, labeled burning a "terrible mistake" and suggested alternative uses for the funds, such as supporting development, launching Catalyst Funds, enhancing DeFi liquidity, and marketing efforts.
