What the heck is HPH?-The real reason for token burns

This post is not financial advice.

Let's talk about token burns, man. Obviously I am talking in context of this token not burns in general.

Current HP: 537.008
Liquid Hive: 28.671
Swap.hive : 2.71
HBD:.530
unicoin.HSBI HBD: 1.350

Why would I burn tokens if market price doesn't matter to me ?

Simple answer the HPH (hive power holding) ratio.
Every Unicoin is backed by Hive/ HP (and some HBD) I call this HPH.
My goal is to have more HPH than tokens in circulation. It's basically impossible for it to not be that way but , still. One way to control that is token burns.

Since all tokens are backed by HPH burning tokens increases the HPH to circulating token ratio. The more HPH there is in comparison to the tokens in circulation the more stable this program becomes.

Think of if it as tokens in circulation is potential "debt". It's not really debt as all tokens are backed but my brain processes it kind of like pseudo-debt. This might not make sense to others, that's fine. I am just explaining my thought process. My brain is...odd.

Immediately after the pre sale is when that ratio will be at it's lowest because I haven't been able to put the Hive received from people buying tokens to work yet. The HPH will still outnumber the tokens, as I have been slowly adding value to the account before the launch (and also pre funded the account). However, the difference right after the pre sale will be very small. So small my brain doesn't like thinking about it.

HP delegations will also play a role. If there are a large number of delegations right off the bat, the HPH ratio will temporarily be lower because more tokens will be needed for the tip bot before curation rewards are paid out. That's not a problem, just a thing. I will watch closely. I won't just mint tokens immediately but I will make sure we have enough for the bot, obviously.

Of course even a week after, that will start to shift as curation and HP interest and post earnings and partnership earnings accumulate.

My goal is to have the HPH outweigh the circulating supply by 20%+. That is the minimum goal. Ideally , I would like that to be closer to 50%+ but that will take time.

Using 2k token example that means I want the HPH to be 2400+

I will be very close to that number after the pre sale but with the HBI bonuses paid out that figure may be closer to 2300, but we shall see. If more than 2k tokens are sold the HPH ratio will go down temporarily and may be closer to 5 or 10% depending on how many tokens are sold vs HPH.

All this said I likely won't do many /any burns until the tip bot has been running for a while. I don't want to burn tokens to have to mint new ones immediately after, that just seems silly.

The first burn will be after the first HSBI exchange before the token buybacks start. Unless I pick up tokens cheap on the market and the tip bot doesn't need them I may burn some but don't expect much burning for at least a month or so after the pre sale. Even then burns will be done slowly.

Thanks for reading and thanks for all of your support. ❤️🦄