It is my understanding that if a person loses their seed phrase to recover their wallet - the crypto becomes lost forever? I am NOT having this issue, but I do have some questions, concerns, and ideas:
1. The Crypto still exists somewhere, right? - - - The seed phrase for a wallet helps restore the crypto contained. And I am aware that you can restore your Daedalus wallet through Yoroi. So, unless you used a cold-storage wallet - the funds/crypto do exists somewhere, right?
2. “Blacklist” for Inactive or Lost Wallets - - - Could there be a mechanism in which users who have lost their wallet phrase can add the wallet address to a sort of “blacklist”? A gathering of addresses that have been locked or lost. Then, in some point in the future, the community can decide what to do with the gathering of inactive or lost wallets?
3. Lost or Locked Wallets Get Transfered into Treasury - - - Could there be a mechanism in which all locked or lost wallets get aggregated into the Treasury? After, say, 5/10/or 15 years of inactivity or being locked - - - the funds could go back into the treasury? Should there be a mechanism to retrieve these lost or locked funds?
I’m not sure about the technicalities of wallets. But storing crypto seems like a game of not “getting caught with your pants down.” (e.g., lost phrase, nonupdated system, etc.) And crypto trading seems like a game of “hot potato.”
In My Mind: Cryptos like ADA/Cardano strive to exist for many years, but I find it hard for future people to want to get involved if many crypto is lost or locked forever, before they were even born.
For instance, there will only be 21 Million Bitcoin - but 10 to 20 years from now - - - do people really want to use/invest in Bitcoin if the majority of the crypto has been lost or locked forever? I know this impacts the “supply vs demand.” I know less supply usually equates to more demand - but I find it hard for future generations/users to demand a short supply - especially when it comes to infrastructure and mass adoption - many people do not want to play a boardgame that is missing pieces.
Conclusion: I do not intend to annoy. It just seems like the crypto community can find a better balance between anonymity, immutability, and sustainable systems. This notion of, “I lost my wallet phrase, oh well, it’s gone forever!,” does not sit well for me.
Thank you for your time, patience, and understanding.
EDIT UPDATE: Similar thread located at - Suggestion to add in a feature that could make cardano even more unique and future proof