Why do they set a hard cap on a utility token? The biggest Ponzi to date or?

What’s the end game here because it seems counterintuitive to limit the blood supply in a living and breathing organism?

Are we staring into the eyes of the new form of slavery or a global hoax?

A utility token in a blockchain network is, effectively, a bloodline that keeps the system running. It is the equivalent of electricity in your home that powers everything you use.

The year is 2038. Cardano is now a top dog, running a global supply chain, the world’s finances, and even all levels of civic governance and administration. The last ADA has been minted two years earlier. And then, a support ticket arrives:

I’m 24, fresh-out-of-college, and I need to send my certifications and diplomas to a potential employer. Hence, I need to acquire a certain amount of ADA to do that.

But, due to its deflationary nature; thus, built-in scarcity and the fact that no new tokens can be minted, 80% of the total supply is locked in millions of staking pools. The remaining 20% is now worth more than gold.

How can a poor unemployed former student from a third-world country afford to obtain his own certifications locked inside the Cardano blockchain?

Back to our electricity analogy. Imagine receiving a note that, in two years from now, companies will seize the production and no new electricity will ever be generated again.

How would that reflect on the price of a single unit of this life-important utility and how many people on the planet would be able to afford a working lightbulb?

Therefore, a limited supply of utility tokens in blockchains that promise to “serve the world and those underprivileged” proves that their portrayed “revolutionary, decentralizing, and freedom goals” are a sham! They only want to squeeze more money, that’s all.

So,

What happens when a major blockchain runs out of its utility token?

If the majority of the supply has been staked in pools to reap the return as a form of a long-term low-risk investment strategy, what is running the blockchain?

In a hypothetical scenario, 95% of all tokens can end up in staking pools. What’s left is simply not enough for the proper functioning of the network.

So what do they do?

OPTION #1: create an auxiliary token

This, effectively, creates castes with a governing aristocracy that holds ADA and thus, profit makers on one side and peasants or the everyday users that are using the new utility token on the other; something we already have now so what’s the point, right?

Ah, yes, instead of a few nods (servers), we are now using millions of smaller ones (that, by the way, eat up the bulk of the global energy production) while placing all our sensitive information on everyone’s computers.

The reason we are now using SHA-3 is that all previous versions have been successfully hacked! How long before a leet haxor figures out a way to hack this one also and “look inside every single smart contract on the blockchain that isn’t utilizing sharding”?

OPTION #2: increase the supply of the original native token or remove the hard cap altogether through the global consensus of the governing body

This inevitably leads to a significant drop in the price and massive losses. There is no exclusivity anymore so everything the blockchain project has been doing thus far was a scam or, to be more precise, an elaborate Ponzi scheme where only those who had been in the game since the beginning made serious money.

There is no third option!

Therefore, one of these two is in effect. Which one sounds more promising? I’m eager to hear your thoughts.

P.S. I recently asked Cardano’s founder, Charles Hoskinson, to provide an answer. We’ll see what he has to say about it if he responds.