Will cardano's smart contract consume Ada?

anybody can tell me cardano’s smart contract consume Ada,and ADA will deflate?thx

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Smart-Contracts will consume fees to be used. Fees are paid in ADA. It doesn’t mean ADA will deflate, tho, because fees are not just evaporated - they are paid to nodes, so they can go and spend it for other stuff.


I think he is asking if it can “burn” ADA, and I would think the answer is no. Issue and burn is more of a token paradigm. This is more about transfer, you can transfer ADA to a side-chain where it can be turned into some side chain token subject to the side-chain’s mechanisms. There is a restriction that you can’t transfer more ADA back to the main-chain than you sent to the side chain (or collectively, the side chain exchanges with ADA have to balance non-negative.

If I understand it correctly, the transferred ADA are now under control of the side-chain’s smart contracts, and the side chain token holder cannot necessarily get their ADA back. Depends on the token contracts.

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Thank you for answering me.That is to say, ADA may be consumed and cannot be recovered?

Not at all. What you get back is function of the agreements and smart contracts. You may get another kind of tokens managed on the side chain. Those may or may not be exchangable to get back ADA. To the extent they are, ADA protocols limit what comes back from any sidechain to what went out. I don’t know any details as to how the limit is implemented.

Think of a side chain as sort of a collective wallet managed by the rules of the side chain. You can add ADA, and those ADA don’t have to stay in the wallet, they can be spent on all sorts of collective interests. If the tokens exchanged for ADA are security tokens for a company, the company’s rules and process make more and less ADA. They can even give some directly back to the security token holders. They just can’t pull more out of the side chain than they put in.