The idea behind burning the Steem is to counter the inflation of Steem. The rewards pool consistently increased the supply of Steem making it less valuable. When smaller account keep their payout and larger accounts burn theirs, then the overall supply (and value) of Steem does not change and the distribution of Steem shifts in favor of the smaller accounts.
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Well MARKET scarcity increases price. Granted, this can also be achieved by simply not putting your Steem on the market.
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