-Cardano already distributes a significant amount of ADA every epoch in staking rewards to addresses that are permanently inaccessible. This occurs when ADA is lost, such as when a holder loses their seed phrase or passes away without sharing their keys, rendering the funds permanently unreachable. In most other cryptocurrencies, lost coins simply exit circulation. For example, it is estimated that around 20% of all Bitcoin supply is lost forever [[investopedia.com](https://www.investopedia.com/tech/how-much-bitcoin-has-been-lost/)], with more granular analyses by Ledger Academy and Chainalysis both converging on roughly 4% of all Bitcoin being lost each year [[ledger.com](https://www.ledger.com/academy/topics/economics-and-regulation/how-many-bitcoin-are-lost-ledger); [chainalysis.com](https://www.chainalysis.com/blog/money-supply/)].
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