Charles Hoskinson, the founder and CEO of IOHK, the company behind the Cardano blockchain, has responded to many critics on Twitter who often claim that the supply of ADA is huge.
He spoke to the Cardano developers and suggested that they create an application that would allow anyone to destroy ADA as needed.
Proof-of-Burn Protocol
In the live video, Charles mentioned that from time to time someone would say on Cryptocurrency Twitter that Cardano should destroy some tokens because the ADA supply was “too high.”
Hoskinson stated that the time has come for the Cardano community to demonstrate Cardano’s ability to deal with such unfriendly suggestions.
He once presented the audience with a paper describing the “Proof of Burn” mechanism that allows anyone to destroy cryptocurrencies by sending them to an address that cannot be extracted or otherwise used.
In the video, he shared his computer screen and showed this paper written by several cryptography experts from the IOHK and Cardano community.
According to Charles, this paper is a formalization of the Proof-of-Burn Protocol. It describes the process of this mechanism:
- An unusable cryptocurrency address is generated, and the cryptocurrency is sent to that address and thus destroyed;
- A mechanism to check whether the address is actually unusable.
Hoskinson Recommends Developers Create a Proof-of-Burn ADA Application
The founder of IOHK said it would be great if developers who are just learning to build applications on Cardano could create a proof-of-burn application for ADA.
In this case, Hoskinson stated that whenever someone started talking about the time to destroy ADA again, he would send them an unusable ADA address to destroy the coins, and suggested they contribute by asking first to destroy some ADA.
Hoskinson said he and his team could do this on their own, but they didn’t have time due to the closeness of the Alonzo fork (the date for that hard fork is September 12th) so he asked other development teams in the Cardano community to create this application.
Hoskinson will choose the best. The winner receives a prize – the NFT of Hoskinson’s favourite toy lobster, which can often be seen on the microphone in the live broadcast.
