Cardano Founder Rejects Community Proposal to Burn Treasury Funds

Cardano Founder Rejects Community Proposal to Burn Treasury Funds

Cardano (ADA) co-founder Charles Hoskinson has firmly dismissed a recent proposal from some members of the community to burn $500 million worth of ADA from the project's treasury. "The treasury is not just something that was created out of thin air. It comes from block production and transaction fees. Burning the treasury would be akin to stealing from SPOs (Stake Pool Operators) and ADA holders," Hoskinson explained via Twitter. The proposal to burn the treasury funds was suggested by certain members of the Cardano community as a means to increase the price of ADA. However, Hoskinson believes that such a move would have detrimental consequences for the long-term health of the project. "Burning the treasury would send the wrong message to the community and potential investors. It would create a precedent that the treasury is a slush fund that can be used to manipulate the price of ADA," he said. Hoskinson also emphasized that the Cardano treasury is an important resource that will be used to fund future development of the project. "We have big plans for the future of Cardano, and the treasury will play a key role in making those plans a reality," he said. The community's proposal to burn the treasury funds has sparked a lively debate within the Cardano community. Some members support the proposal, arguing that it would reduce the supply of ADA and thus increase its price. Others, like Hoskinson, oppose the proposal, arguing that it would be harmful to the long-term development of the project.