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CPS-0022/README.md

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@@ -35,7 +35,7 @@ Lost Stake continues to earn and compound staking rewards and carries voting wei
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> **Figure 1:** Circles depict the Total Rewards Pot and its diminishing share with some rewards also flowing to Sticky Stake and Lost Stake addresses every epoch.
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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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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/news/20-all-btc-lost-unrecoverable-study-shows/)], 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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Cardano’s design, however, allows lost ADA to remain economically “active” if it was delegated prior to loss. Once delegated, a stake key remains registered and tied to a stake pool (for block production) and potentially to a dRep (for voting) until it is actively changed or deregistered. A user who loses access cannot undelegate or spend those funds, meaning the ADA continues to stay delegated indefinitely.
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