Hi Steemians,

All members of the Steemit Crypto Academy community wish you a good start to the week and invite you to participate in large numbers in this fourth and final week of the Season 5 Steemit Engagement Challenges which will take place from tomorrow, Monday October 31 at 00:00 UTC until Sunday November 6th at 23:59 UTC.

We renew our thanks to all the members who have remained faithful to our contests, which aim to better explain and simplify the concepts related to the field of Blockchain and crypto-currencies. We also invite you to participate in this week's challenge and help enrich the platform with your work, as well as interact with your colleagues by leaving relevant comments and votes. This week we will focus on the token burning process, and we want to read your posts.

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Contest theme: Token Burn

This week, the focus of the contest we will be discussing is about understanding the Token Burn process.

The term token burn exists in the crypto world, where developers destroy part of it in order to limit supply, and thus increase its price.

All burns are recorded on the blockchain as a transaction, so anyone can verify that they have already been permanently withdrawn from circulation.

The developers, when creating a new cryptocurrency according to a mathematical model, calculate the amount of digital currency needed for the project. And developers have to burn part of it if the goals set for the model are not met.

Investors should not worry about this process, as the digital currencies they own are burned, and this improves their exchange rate, and increases the demand for them.

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What is expected in the Contest?

• Use your own words to determine what is token burn? and explain how it works (if possible add an illustration for it)?

• List the benefits of token burning with a detailed explanation of each.

• Why does the blockchain burn its tokens? Study the case of a blockchain that burned its tokens by identifying the results obtained.

• The burnsteem25 company that encourages burning 25% of your publishing revenue? Do you think it will help boost the value of steem currency in the medium term?

Contest Guidelines

• Post your articles in the Steemit Crypto Academy community. The participation time is between Monday, October 31th, 2022, 00:00 UTC to Sunday, November 6th, 2022, 23:59 UTC.

• The article should be at minimum 500 words. You can write more. Your article must be free of any form of plagiarism.

• Your article title should be **Steemit Crypto Academy Contest / S5W4 - Token Burn . Add the tag #cryptoacademy-s5w4 and other relevant tags.

• Participants must be appropriately following #club5050 or #club75 or #club100.

• The community moderators would be leaving quality assessments on your articles and probable upvotes.

• In addition, your article must get at least 10 upvotes and 5 valid comments to count valid in the contest, so ensure you interact with other users' entries. Do not be involved in vote-buying.

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Rewards

• SC01 would be checking on the entire 7 participating communities and upvoting outstanding content. Upvote is not guaranteed for all articles. Kindly take note.

• At the end of the week, we would nominate top 3 users that had performed well in the contest and they would be eligible for votes from SC01/SC02.

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Important Notice: The nomination of the top 3 users in our community is not based on good grades alone, it includes their general engagements (quality and quantity of their interactions with other users' articles) to measure the overall performance. Also note that generally, you can only make one post per day in the Steemit Engagement Challenge.

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Conclusion

Burning tokens is a common practice in the cryptocurrency industry. Having the effect of reducing the supply in circulation, it is important to understand the ins and outs of this and we hope that this article has helped you to see more clearly.

The main objective behind a token burn is to influence its value by making it rare. However, this does not mean that this mechanism is necessarily a good thing since it is far from being the only factor influencing the valuation of a cryptocurrency.

In general, investors appreciate this practice and push developers or the governance of projects that do not do so to implement a burn mechanism. However, value capture is not guaranteed and no project should rely solely on this.

We are looking forward to your participation and we wish you many success in the contest.