Post
Topic
Board Altcoin Discussion
Re: Does this make any sense?
by
TopT3ns
on 04/06/2021, 22:49:44 UTC
The developer wanted to create scarcity or at least trim down the humungous supply of their token so I think it does make sense that they burn some of the tokens along the process.  This is to limit the inflation that will pull the price down.  It is only one known strategy to attract investors making them think of the future scarcity of the token which means, less supply more demand = higher prices.
therefore developers must create projects that are really useful so that demand can always increase because if you make a coin or token if you apply all of them, but the project being developed is not very attractive then it will be useless because there is definitely no investor support.