Post
Topic
Board Altcoin Discussion
Re: Burning of the XLM supply
by
Periodik
on 06/11/2019, 03:39:57 UTC
Half of the XLM supply is gone. The team has burned about 55BXLM, do you think this is a good step for the tokenomics
https://www.coindesk.com/stellars-foundation-just-destroyed-half-the-supply-of-its-lumens-cryptocurrency
For me, does supply really have much impact on token price? Token demand is crucial regardless of the supply number
Just read about it now and i decided to share

That is not fully tokenomics. That is simply lowering the supply with the hope that the lower supply will somehow meet the demand and will increase the value of the Stellar token. Tokenomics is creating a consistent and sustainable environment for the investors to continue supporting Stellar and its products. A sound tokenomics will attract more investors. A burning is a just a one-time act that does not guarantee the continuous demand for XLM. It will cause a pump though if it involves a large amount such as what Stellar is burning right now.