RE: STEEM BURNPOST Initiative in Solidarity with Steemit's Reduction in Stake Selling
Dear @thecryptodrive
Indeed since Elizabeth took over things are getting better. I'm also more optimistic about the future of STEEM already (comparing to days when Ned was fully in charge).
Any idea is STINC is still being forced to sell their own STEEM supplies in order to cover operational expenses and how much do they sell monthly?
What if in response to Steemit's reduction in selling, the community responds by burning a percentage of their post rewards by setting a beneficiary percentage to @null
I absolutely appreciate idea of burning tokens, however I'm failing to understand how can it really help to maintain price of tokens if speed of burning tokens is still way smaller than speed of "printing" new ones (inflation).
Let's not forget that burning tokens isn't creating demand. Please don't take me wrong: I'm not complaining here. I'm just not sure why so many people see burning tokens as a way of pushing price upward. That could be only the case if supply isn't growing.
So the fact that we will burn part of inflation isn't really going to increase buying pressure. It may obviously partly reduce selling pressure, but only assiming that users who are burning those tokens would otherwise sell them (instead of staking). At the end of the day burning part of our rewards will affect price as much as staking it and powering up. It simply won't.
Correct me please if I'm wrong. I've been working on math and thinking of token economies for very long and my impression is that I'm right :)
ps.
How can we check what SPS has been proposed and approved/declined? Any idea?
Strong upvote on the way :) Catch!
Yours
Piotr
Inflation is a core concept of steem so just ignore that and try not to draw parallels between the two.
Burning token's reduces the overall supply which in turn increases the worth of each steem.
If a company is valued at $1million and has 1 million shares then each share is worth $1. Now if a company burned half of those shares it does not mean that company's intrinsic value was cut in half. It is still worth $1million but now your shares are worth $2 instead.
Nice way to put it, thanks for adding your thoughts.
Thank you for your valuable comment @gnimeets
ps. I've noticed that you didn't post anything in 2 years. how come? Are you back?
No worries lads.Yeah I'm back. The last two years have been kind of crazy for me so my focus was pulled elsewhere. Pretty much just came back to do a little recon to see if much has changed. Things do not seem to have changed that much but they are changing.
Steem still has massive potential and was my first investment outside of bitcoin. I guess you could say I am back due to some form of nostalgia. Over the next few weeks I intend to buy 10k sp and work from there. Very few projects(maybe none) have the potential that steem does.
Welcome back @gnimeets :)
You are correct, burn and steemit stake selling reduction doesn't directly influence buy pressure but it does improve market sentiment, the annual 8%+ inflation coupled with Steemit selling may put off some investors.
At the very least burning from the community side and reducing selling on Steemit's side will reduce sell pressure, the burning takes tokens out of circulation and are effectively destroyed so can never be sold, which means it lowers the annual inflation.
To check SPS proposals, go to steemproposals.com or you can login to steempeak.com and it is on their menu close to the bottom.
Thank you @thecryptodrive
did you try to create any proposal yourself on steemproposals? Just curious.
Yes I was one of the early proposals, just a small one for $200 to help a dev friend, see my blog, but didn't get enough votes.
it's me again @thecryptodrive
do you use telegram by any chance?
No, I use Discord, I always miss messages on Telegram, howcome? Lanzjoseg knows me on Discord.