There has been a lot of discussion on social media about whether it would be better to introduce a burn mechanism for the Cardano (ADA) coin in a bid to increase its value, as many traders believe that adding a burn mechanism could be beneficial to Cardano (ADA) holders. Cardano because the initiative will ultimately increase ADA prices, while other project enthusiasts have raised concerns about the long-term effects of burning ADA coins.
The issue was widely discussed in the Twitter thread of the Cardanoflantoshi account, some users expressed that the Cardano developers should add a coin that burns a part of the fees paid in the network, this fee that is paid in ADA will burn the supply overall Cardano. as existing carriers will be on the receiving end. For burner profits, the value of your holding will see a dramatic increase.
This claim was commented on by ADA holders who believe that the addition of burns in Cardano’s original protocols could discourage people from using the network, as one independent journalist put it: “If people are actively discouraged from using the network due to deflationary pressures, the noise eventually dies. as nothing happens in the Network. Blockchain”.
People further argued that developers might be forced to migrate to other networks with a large community in an effort to see their apps used by a large number of coin fans.
Why should Cardano be burned?
It is well known that the call by investors to incorporate clones into ADA coins is a result of the cryptocurrency underperforming as it reached an all-time high of $3.09 in September 2021.
Since then the price of ADA coin has dropped 74.5% and is trading around $0.789, remember Cardano started the year around $1.3 and dropped almost 40% of that value amid the ongoing Russian invasion from Ukraine.
It should be noted that Cardano has 45 billion cryptocurrencies and many people believe that a large amount leads to a lower price.
Cardano plans to attract developers
The project developers are still looking for unique ways to increase the value of ADA by attracting developers to build on the network, and a large number of DApps are in development and planning to launch on Cardano.