Ada max supply question


#1

Can cardano burn it’s tokens or coins in future if requested through voting system to increase it’s usd value.


#2

Maybe. But why would we want to burn? Just to increase Ada’s price?


#3

This is a fun question. The answer is yes, of course. When the treasury system is finished, http://www.lancaster.ac.uk/staff/zhangb2/treasury.pdf, you should be able to request funds from the treasury to do whatever you want to do with, should the users vote for it. You could also buy Ada and burn them yourself :slight_smile:

However, I am more inclined to switch to an inflation model than try to play central banker. If we wanted to control the price for some reason, you could use a governance system to increase/decrease supply creation to meet targets. This has actually already been done to try to peg to the dollar.

The importance of minting. Generating tokens through minting/forging/rewarding is often thought to be a payment for securing and facilitating the protocol. You could argue in Bitcoin it is more of a compensation, since some miners barely cover cost. But in any case, it is one of the mechanisms by which the tokens get distributed.


#4

I’m also concerned about the maximum supply. I can’t help but feel the market cap at the moment is incredibly high. The project has more potential and vision than any other crypto out there and the team behind it is immensely qualified so I guess that’s priced in. From an investor stand point though I have concerns that If I buy now I may be buying an overpriced project as for it to do 10x again it would have to be the second largest crypto as things stand. Its hard because I’m very close to buying it and buying into that story but I’m not certain I can justify the current market cap.

Am I right in thinking the proof of work algorithm goes live in about 23 days with the next update and with this we should be able to receive block rewards just by holding the coin (or allocating our proof of steak to a delegate)?


#5

Cardano is Proof of Stake, set for Q2 of 2018, with delegation.

I cannot comment on your investment strategies :slight_smile:


#6

What will happen to the pos if max supply reach? (all ADA fully mined)


#7

that was a stupid question. i thought people invest to make money. a coin burn would be a brilliant idea theres no reason to have so many damn coins in circulation. all it does is drive down the price. if the only reason you invest is because you “believe in the technology or project” why dont you donate your money to cardano instead??? if im investing my hard earned money i expect a good ROI or else im selling and taking my money else where.


#8

the price will drop severely. cardano is a platform, there’s no reason to have 45 billion max supply. do you know why bitcoin price is between $11,000 usd - $20,000 usd per coin??? it has 16 million coins in circulation and a 21 million max coin supply with a 200 billion dollar market cap. cardano market cap is at 18 million. if cardano had a lower coin supply like in the 20 million range, cardano price would be in the hundreds or thousands its number 5 on coinmarketcap,


#10

Yes, I wish ADA can do a reverse-split to a max of One Billion Shares to attract institutional and serious investors. If you disagree, just take a look at Bitcoin with a maximum supply of 25 Million Units or Coins. Right away, you see value due to scarcity of supply… sorry I didn’t see the above message before I post this. It appears to be saying the same thing…


#11

The market cap is fine. It’s what gets done with the extra coins that matters.

I’d personally love for part of it to get locked into a liquidity account, which banks/exchanges etc can use to move money around (like ripple/stellar etc). Alternatively, that’s one of the things the funds locked in POS get used for.

Sometimes having outstanding liquidity has it’s uses. Being able to fund a decentralized bank would cost a lot, but would actually benefit the value of the coin. There are soo many potential uses for the outstanding ADA, burning them is about the most useless option.


#12

Aren’t all of the PoS fees during the bootstrap era being burned already (granted a very small % of supply)?


#13

Regardless of max supply, a huge amount of coins were already sold to ICO investors at a ridiculous price of 0.0024$. People who got hold of this cake piece are just going to be able to deflate the value of the coins and then dump when they feel like.


#14

Kind of looks like maybe that is source of current sell walls? Maintain stability to keep the hype down while progress being made on development. Seems like a good idea to me.


#15

There a so many people involved in the development team of cardano that have crypto coins experience and they are not trying to boost the price, what they are attempting to do is give it true value that is backed by some very intricate code that does some very amazing things, I am pretty sure that the team could hype it to $10 if that was the goal, but the truth is cardano is not typical crypto, the developers are truly working on the latest and greatest code for blockchain technology and as a peer review process everyone that contributes will be recognized for their efforts or failures and these people will have to live with the review for the rest of their life in the sphere of their expertise.
As for investing - I will share my thoughts on my investment strategy that is moving forward,
I will hold ADA and stake it, and over the next 30 years I will be able to reap a percentage from my holdings and also as distribution becomes wide spread the coin will gain more value against the dollar increasing the value of my stake, not looking for it to be a pump and dump like Doge (which I am fond of)


#16

Charles Hoskinson answered this question today in interview with Cryptosomniac

Here’s what he said:
The answer is no. If coins are to be burned, whose coins need to be burned?

And if you have trouble valuing single ADA, you can look for value of K-Ada (1,000 ADA).


#17

Seems more likely to me then, that they will stake their large holdings and spend the proceeds. I don’t think most of the early money is sitting on exchanges…most of the early buyers were Japanese pensioners, not savvy crypto-traders…


#18

Yes I have heard this logic, and also used it to defend cardano. However the K ada idea might quite frankly be the way to go. The number coins is not a problem in itself. It is the perception of the number of coins that is the problem. We don’t need a coin burn exactly. What we need is to simply raise the price of the coins 100 fold and say that there are a hundred time less coins. No coins actually burnt just a movement of decimal places across the board. I know this is in all likelyhood not possible but the problem is in mind of the potential investor and it is that perception that needs to either be catered to or altered


#19

It is interesting how a couple of decimal places skew the coin market cap listings and make a psychological impact. I remember from one of Charles interviews that he said the reason they put the decimal place where they did was to make it resemble the yen to cater to the Japanese investors. I think once people figure out that the total supply is much smaller than it appears it will make investment more attractive to many.


#20

Can I start a fight about baseball on this forum … Im assuming from your handle you’re a yankees fan…urgh…I hope those two beasts (judge and stanton) get in a wrestling match in the shower and break each others arms. Was that a step to far :wink: Honestly the number is just not that easy to get past …neither is the current market cap. Their is a reason that Nano has sustained exponential growth. As much as we want to think altruism and profitability go hand in hand in this space it’s still allot of bloody coins. Actually i do like D Matts But really any yankee from 1996 onwards needs good t bagging. :sunglasses:


#21

Ha! I’m less of a Yankee fan then I am a Don Mattingly fan believe it or not. The success they have had is a direct result of him in my humble opinion. The only person I would vote for over Charles when the IOHK contract comes up is Don Mattingly! BTW I hope to God you are not from Boston or worse yet a Mets fan! A Rod is a total douche btw we can probably agree on that.