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RE: To burn or not to burn ... I say don't burn crypto (or bridges or witches, maybe ducks are okay)

in Proof of Brain4 years ago

With an extreme reduction in supply, there will be an extreme reduction in new hands, and thus a concomitant reduction in (future) demand. With a modest reduction in supply, there will be a modest reduction in new hands (and thus maybe upward pressure on price, but the loss of new hands might just offset the upward price pressure, and it could possibly go the other way -- see @urun’s comments about $DOGE at the end of this post ). With a tiny reduction in supply, there will be (imho) zero increase in value -- it’s just not something that gets people’s attention and thus does not move the needle (at all, imho).

This.

a steady increase in supply is a good thing, as long as that supply is finding its way into new hands

And this.

Inflation (increase in supply) is not the enemy. Network effects are key. A currency is all about network effects.

I also agree on the idea of funding a liquidity pool with the POB tokens that are burned. POB has low liquidity and a very small number of holders. Using those tokens as rewards for Diesel Pool liquidity providers is a good idea. Do Diesel Pools even have a reward system in place, yet?

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