Quote from: serjent05 on August 06, 2023, 11:36:37 PM

Quote from: KiranKBS on July 30, 2023, 01:09:44 PM

Hi,
Some How this Burn Buzz word stuck in my mind and i didn't see practical results so far in any successful token.

For example, Shiba Inu is burning tokens aggressively and is it really helping them?

May be i am noob here and happy to hear from experts!

I believe this topic will be useful for someone too!

Burning is one way of reducing the supply of the token. So in the essence of supply and demand, burning is an artificial way of reducing the supply making the sell pressure to be eaten out while the demand pressure is increasing.

This also shows that the developer believes that the token in circulation is too much so there is this need for them to intervene and cut the existing supply. I think rather then burning the token supply, the dev should work their ass out in creating use case for the token. It will also give a better result if aside from burning tokens, the developer are creating partnership to different company and individual in utilizing the use case of the token. After all, adoption pushes through when there is a need for an individual to have the tokens in their wallet.

Yes, in terms of reducing the supply tokens that are circulating and pressing to encourage price movements, this is effective if the burned tokens have a large amount of the total supply made.
Of course, if you only rely on burning tokens, this will not have a significant affecting demand movement, because the demand is based on the use case on the token itself, which makes a reason for people to buy tokens for their needs in accessing the ecosystem offered in the project, but if it is only limited burning without an increase in utility in the token will make a temporary increase, because the use case of a limited token will make the token left, it may have to talk realistically in terms of the project long -term because if only relying on the burning of the token to suppress the movement it will be useless for the future, they can lose money.