RE: Burn Post
You are viewing a single comment's thread:
I still don't understand why burning rewards is worth it. Anyhow, here is my contribution @buildawhale
0
0
0.000
You are viewing a single comment's thread:
I still don't understand why burning rewards is worth it. Anyhow, here is my contribution @buildawhale
Say I have a bake sale and have 1000 pies priced at $10. I sell 200 pies, all is well and we move on.
Say I have another bake sale and I have 1 pie for $10. 20 people show up and they all want a pie. They all decide they are willing to pay more for the pie and start offering $12 for the pie, then $13, then $15. Because there are fewer pies, people tend to be willing to pay more.
This works in crypto as well, but it isn't an exact science. There are a ton of Hive tokens, and burning a few dollars won't make a massive impact. It does reduce the supply though, which may or may not prove to be beneficial.
On the other hand and more important imo, all tokens burned won't be sold, and selling almost always pushes the price down.
If that is the case, I rather wait for natural disasters, or token owners who die. In both situations, tokens are left aside without circulation and won't be sold anymore.
These rarely impact the market.