Smart contracts have been the great ones expected in Cardano, their implementation will bring great solutions to the ecosystem. Despite this, it is not always advisable to implement them because in certain cases can be limiting and even detract from a project.
Smart contracts have been used on many occasions in blockchain monetary systems to hinder the transmission or sale of an asset by rewarding the holders, something that clearly promotes the artificial increase or maintenance of a higher nominal value of that asset but not reflects the real value. Although smart contracts can be very tempting in certain projects, they detract from the utility of the token because those smart contracts have been designed to limit the usefulness of that currency.
Applying game theory to crypto ecosystems brings limitations that are incompatible with the idea of hard money, when a kind of burning or payment is applied to each transaction, the ability of the asset to be easily transferable is reduced. It is more convenient to have an asset that is designed to be usable and transferable without penalties.
Imposing some kind of penalty on transactions and the possibility of staking to encourage holders to tie up their capital detracts from the real value of a cryptocurrency as a value transfer system. The fact of increasing the cost of transfers is incompatible with the concept of “value transfer” since this is diluted in each transaction if a similar strategy is implemented.
