Token burning - page 7. | Bitcointalksearch.org

rdewilde

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Quote from: SheriffEl on March 18, 2020, 03:46:16 AM

Hey

I have noticed a few projects that developed a deflation system for their coins/tokens called burning.

They burn their tokens on a special occasion or simply when someone pays their product with the native token. They burn few percent of the price.

What do you think about this? Imo, if people actually buy the produc then it can really reflect the price of a coin?

Let me know what you think.

The idea of burning is to reduce the supply of the token which will then result in a more valuable token, that is increase in price, but even with this, if the team aren't up and doing towards making the platform valuable, then burning will not have any positive effect on the price. That is to say, the most important thing is the team working on their platform irrespective of the whether burning is done occasionally or when goods and services are being purchased with the platform's token, so that the idea behind the token burn will be achieved.

quality.crypto

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Quote from: Lexurdania on April 08, 2020, 01:07:42 AM

Quote from: sahadat on April 08, 2020, 12:03:58 AM

Token burning process has been tried in the market so far but no one has succeeded. Most of used token burning process only for useless project . It,s not just token price up the market that the tokens are burning . It just makes hype for newbies . If a project is useful for humans, then it does not require burning . The value of these projects is greatly increased for the needs of the people.

Token burning was not successful because the project was not good. Some projects that do token burning can attract investors and influence the price movement. I think that any strategy taken by the developer team will have no effect unless the project can produce a good product

A company with strong platform should always build their project according to their roadmap and in this way, the burning model will help the project to increase the price. Without developing it is impossible for the coin to sustain in the market even though they are burning the coins.

MUG1WARA

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all depends on demand in the market, if there is a lot of demand then the team burns the token then the price will increase but if on the contrary the token burn will only be crap

rnsribeiro

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Quote from: Lexurdania on April 08, 2020, 01:07:42 AM

Quote from: sahadat on April 08, 2020, 12:03:58 AM

Token burning process has been tried in the market so far but no one has succeeded. Most of used token burning process only for useless project . It,s not just token price up the market that the tokens are burning . It just makes hype for newbies . If a project is useful for humans, then it does not require burning . The value of these projects is greatly increased for the needs of the people.

Token burning was not successful because the project was not good. Some projects that do token burning can attract investors and influence the price movement. I think that any strategy taken by the developer team will have no effect unless the project can produce a good product

Yeah, a good project is way more that just a good dev team.
You can tell just by looking at ethereum - damn they got the most devs than any crypto company out there, but eth is not top1.
I respect that its daily trading volume went really high lately, but its market cap is far away from btc.
And I think it is all about lack of good marketing.
bitcoin promotes itself since people doing memes, news and etc just to be involved in "crypto world"

Lexurdania

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Quote from: sahadat on April 08, 2020, 12:03:58 AM

Token burning process has been tried in the market so far but no one has succeeded. Most of used token burning process only for useless project . It,s not just token price up the market that the tokens are burning . It just makes hype for newbies . If a project is useful for humans, then it does not require burning . The value of these projects is greatly increased for the needs of the people.

Token burning was not successful because the project was not good. Some projects that do token burning can attract investors and influence the price movement. I think that any strategy taken by the developer team will have no effect unless the project can produce a good product

sahadat

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Token burning process has been tried in the market so far but no one has succeeded. Most of used token burning process only for useless project . It,s not just token price up the market that the tokens are burning . It just makes hype for newbies . If a project is useful for humans, then it does not require burning . The value of these projects is greatly increased for the needs of the people.

flagpara

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Quote from: SheriffEl on March 18, 2020, 03:46:16 AM

Hey

I have noticed a few projects that developed a deflation system for their coins/tokens called burning.

They burn their tokens on a special occasion or simply when someone pays their product with the native token. They burn few percent of the price.

What do you think about this? Imo, if people actually buy the produc then it can really reflect the price of a coin?

Let me know what you think.

Token burning process is very good for legit project to push price up. All burning process has some system, isn't so easy to understand. I would suggest you to start from Ferrum network. They will burn their transaction cost token as running token price in the exchange. As history some projects reveal new supply without any reason.

firmino10

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I think it is a really good way to increase the value of the project because when you burn the tokens you are reducing the token supply of the token. And when the demand is more than the supply then the price will automatically increase.

Nasonn

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Tokens burn is a good strategy which reduces token circulation. This may or may not affect the price of the token in question. Projects should mint reasonable token supply not to burn some at some point.

South Park

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Quote from: pacman7331 on March 25, 2020, 04:43:39 PM

The deflationary model was popular in 2019! But the idea was pure garbage, almost every deflation projects are dying or they have zero volume! I have no clue that How can a self-destructive model be good in the crypto industry? I saw Nuke, Blockburn, Fuze, Burst and so on and now they all become shit project!

It is not, but truth to be told it was a new idea and people love the hype, also one of the many reasons why bitcoin is valuable is its limited supply so people thought that if the supply of a coin went down instead of up this will make it more valuable, but obviously they forgot that even if bitcoin had an unlimited supply it will still be valuable because of its use case, however the fact the supply is limited only makes it even more valuable and raises the demand even more, but in the case of those tokens since there is no demand then their supply is irrelevant to their value.

Gudubobo

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Token burn is very essential to effect the value of any coin. A project with high volume of coins in circulation should do a token burn so as to reduce the tokens thereby giving it a high chance to be wanted in the market. Less token, high demand and this will effect the skyrocketing of the coin price.

SheriffEl

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Quote from: Twinkledoe on March 25, 2020, 04:44:02 PM

Quote from: JeromeTash on March 18, 2020, 04:17:56 AM

A token burn is still useless if there is no demand for the token. Most projects do a token burn hoping that the price will rise due to less token circulation but this doesn't work if there is no demand.

It's the most useless process i have ever seen around in economical aspects.

Aside from that, it is useless when there is no real use case for that token. As what others already had mentioned. So even if the team is burning some of their supply but it is only use for trading, I don't think the price will increase with only that reason. It should find a real application in the market to create real demand. I think that's very simple to understand.

In my opinion, the whole point of burning is that it's connected with the product somehow and that that product has demand. If not, i completely agree that its useless, but in that case also token is useless, so you cant say that burning use useless

Greatchu

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Token burn feature is just a feature for a coin that already has a very good use case, it shouldn't be compared with projects that rely entirely on burning feature, what is more important here is the use case and burning off tokens is not a good use case

SistaFista

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Quote from: magnum cyber on March 25, 2020, 05:25:03 PM

Quote from: Diamond_Darrell on March 18, 2020, 09:25:13 AM

Quote from: JeromeTash on March 18, 2020, 04:17:56 AM

A token burn is still useless if there is no demand for the token. Most projects do a token burn hoping that the price will rise due to less token circulation but this doesn't work if there is no demand.

It's the most useless process i have ever seen around in economical aspects.

But if everything is fine, and with a good information background with progress in and compliance with the roadmap, then burning coins does its job. It all depends on the seriousness of the project)

nothing is good even if it's a serious project, usually burning tokens doesn't always yield sweet results. I think all of that only depends on market demand. if the token decreases but there is no market demand then the market product also cannot function properly.

At least a good project with demand and token burn is better than a project with demand but without token burn.
The most important thing is the project itself indeed, token burn is useless if the project doesnt doing well.
and binance is the good example of a good demanded project with demand and burn.

magnum cyber

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Quote from: Diamond_Darrell on March 18, 2020, 09:25:13 AM

Quote from: JeromeTash on March 18, 2020, 04:17:56 AM

A token burn is still useless if there is no demand for the token. Most projects do a token burn hoping that the price will rise due to less token circulation but this doesn't work if there is no demand.

It's the most useless process i have ever seen around in economical aspects.

But if everything is fine, and with a good information background with progress in and compliance with the roadmap, then burning coins does its job. It all depends on the seriousness of the project)

nothing is good even if it's a serious project, usually burning tokens doesn't always yield sweet results. I think all of that only depends on market demand. if the token decreases but there is no market demand then the market product also cannot function properly.

Youghoor

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Burning of tokens is one of the token mechanics that is used to ensure that there is a shortage of tokens in the ecosystem hence increasing demand for the little available. This goes a long way to increase the liquidity of the token hence giving long term holders profits.

Twinkledoe

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Quote from: JeromeTash on March 18, 2020, 04:17:56 AM

A token burn is still useless if there is no demand for the token. Most projects do a token burn hoping that the price will rise due to less token circulation but this doesn't work if there is no demand.

It's the most useless process i have ever seen around in economical aspects.

Aside from that, it is useless when there is no real use case for that token. As what others already had mentioned. So even if the team is burning some of their supply but it is only use for trading, I don't think the price will increase with only that reason. It should find a real application in the market to create real demand. I think that's very simple to understand.

pacman7331

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The deflationary model was popular in 2019! But the idea was pure garbage, almost every deflation projects are dying or they have zero volume! I have no clue that How can a self-destructive model be good in the crypto industry? I saw Nuke, Blockburn, Fuze, Burst and so on and now they all become shit project!

DU18

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Quote from: SheriffEl on March 18, 2020, 03:46:16 AM

Hey

I have noticed a few projects that developed a deflation system for their coins/tokens called burning.

They burn their tokens on a special occasion or simply when someone pays their product with the native token. They burn few percent of the price.

What do you think about this? Imo, if people actually buy the produc then it can really reflect the price of a coin?

Let me know what you think.

There are various projects that burn their tokens or coins after ICO or IEO and usually, it is done to remove unsold tokens from circulation as an incentive for investors or traders participating in the ICO or IEO project, and usually with the burning of tokens of course this will maintain the value of the token be more stable but the most common reason is to increase the value of each token by reducing the existing supply.
In theory, fewer coins available for sale and on the exchange mean that each individual token will be more valuable.
Real example we can see now how BNB coin continues to experience price stability and is far higher than the price of ICO they only 0.1 USD in 2017 ago.

South Park

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I am terrible at Fantasy Football!!!

Quote from: SheriffEl on March 18, 2020, 03:46:16 AM

Hey

I have noticed a few projects that developed a deflation system for their coins/tokens called burning.

They burn their tokens on a special occasion or simply when someone pays their product with the native token. They burn few percent of the price.

What do you think about this? Imo, if people actually buy the produc then it can really reflect the price of a coin?

Let me know what you think.

It has been explained many times that such a thing is useless if the coin has not a real use case, if the only attractive aspect of a coin is that from time to time some of its supply is burned then stay away from that coin, as we know there are two aspects that make something valuable, one of them is the supply but the other is the demand and as such even if something is scarce if no one wants it then that something is going to have no value at all despite the small supply.

Topic: Token burning - page 7. (Read 1235 times)