Question, if tokens are burned in the crypto ecosystem is this analogous to profit in a company? For example if we read $100 million worth of tokens were burned in a week is this the same as reading a profit statement of $100 million?
In traditional economies we have companies. We measure the value of a company based on certain metrics. Profit and loss metrics are among the main metrics we look at when evaluating a company just as in real estate we look at cash flow. If we look at crypto does the burn rate provide a substitute metric for cash flow or profit?
Ethereum has just reached 100 million burned since EIP 1559 was implemented in the London fork. What does this mean? Is this how we will track the success or failure or blockchains?
I guess it was a rhetorical question. Of course they are not the same, not even close. I think burning tokens is a great PR-tool. People are afraid of inflation (no wonder, most tokens are created out of thin air), so burning tokens gives them a good feeling about controlling that inflation. It is more a psychological instrument than a P/L metric.
Although there are interesting alternatives, like https://blocktivity.info/, most people still look at the market cap or the market cap dominance if they want to see in one number the success of a blockchain. E.g. BTC never burned a single token and is still no. 1.
Yap that's a bit of what i think also, there is alot of psycological effect, and an attention caller, altough it almost certainly will have a big effect on the price on the mid/long term, so for the holders yes there might be profit, but at least i cannot calculate it :D.
Hard to answer technically, haven't followed also but i think it's burning part of the fees ? the burning in some cases might have some use, or just be burned for some reason.
In a coin like ETH which is competing with BTC pretty much, it's a way to speed up the competition, and it is alot of burning going on.
BTC hasn't done this, It's going to be interesting seeing this developing specially with all the games surrounding and creating a big demand for ETH.