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RE: 3Speak's STEEM Burn Initiative! #NewSteem
Good that you guys are doing it. But if it is self-evident that burning is good for the value of the token then we might as well just reduce inflation and not require it.
Burning and inflation are two separate things and simply reducing inflation does not null the benefits of burning. Burning helps price by decreasing supply. Coins like BNB have zero inflation and still benefit tremendously from burning. Even if we reduced inflation, burning still helps.
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That's a solid point, and I'm for sure with you on it. It's just that if we think it would be good if all front ends started burning author rewards, well, then we may as well propose reducing rewards derived from general inflation?
Not arguing against burning having no purpose afterwards, and support the ideas you guys are having👍
Instead of everybody getting interest from nowhere (inflation), and everybody being encouraged to burn their money (deflation)....
Let's just get rid of the inflation. That's fiat bullshit anyway, we don't want inflation.
Inflation spurs forward activity. Killing it would be a bad move.
So says the Federal Reserve, yeah. I think they're corrupt liars, though.
Agreed. Please stop the inflation. It’s killing the price, since as a community, we do not distribute the inflation to projects that bring in more profits. We just distribute it to blogs that add no value and bring in no money. Burning allows us not only to remove the inflation, but to turn Steem into a deflationary model. This has to be driven by organic profits coming in from projects
Very wise words @starkerz
Dear @theycallmedan
Interesting initiative. I've noticed that burning tokens is a very trendy thing lately. And as much as I understand that it does slow down inflation and reduce growth of total supply - I still don't know how could it affect the price.
Supply overall is still growing and all burned tokens won't be able to catch up with inflation. On top of that burning tokens itself won't create demand. Without increased demand, it really won't help that much to burn those tokens I'm afraid.
Anyway I value what you're trying to do and I do not argue. Just wanted to share my thoughts and hopefully I can be proven wrong.
Yours
Piotr
Hi @fredrikaa
I may be wrong, however burning is good to reduce supply (in our case it's reducing growth of supply). It doesn't affect value as long as there isn't more demand also being created.
Either someone stakes tokens or burn them - it will just not affect the price the way we like to think it does.
Cheers
Piotr