Burning only really helps price. So while they are nice, I don't think it should be the primary focus for people because the tokens themselves still require a strong community and use case.
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I disagree somewhat. Burning produces scarcity, which is a decrease in the total number. That causes the price to go up, but burning also helps to limit supply.
If the price of the token goes UP, then that helps the perceived value of upvoting and commenting, since those are rewarded in tokens.
I imagine that people would be more likely to vote and write content if they knew they received 10 tokens of some type worth $1 USD due to curation than recieving those same 10 tokens and the worth is $0.10. While it's the price that drives the human behavior which leads to more tokens, we can't ignore it.
Well...I would say the human behavior changes with price. If people are the ones running to the ones with the most hype, then prices will just go back down after the hype changes.
I think we can kind of see how this worked with LEO token price being near $1 but it started to slowly decline after POB came out. I would say burning tends to just affect price and it might not affect the people who will stick around when its not the hottest thing.
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Yeah agreed. I dollar cost average my purchases, and buy and hold for the most part. I do sell some tokens when I earn a good number of them via miners. I stake 1/2 and sell the other 1/2. That way I grow my account while also creating some liquid hive I can use for whatever. I definitely appreciate our conversation here, because the movement of the prices on this market baffle me sometimes. :D
Price, utility and demand of a token are tightly linked together I believe. I saw how POB was attracting tons of people when it's price was very high.
By burning token, not only do we limit it's supply, we also increase it's attractiveness for staker and for buyers. People don't want to buy shit coins, they want to buy stuff that goes up in value.
Speaking of PoB, have you noticed that the volume of posts with the tag has fallen off now that the price is slightly lower?
It's amazing how people react to prices. When price of hive was 0.8 $ people were posting like crazy. Now number of posts decreased drastically.
That's one of the benefits of following the CTP tribe recommendations. Posting daily means you earn when others don't.
Put another way: You can't earn rewards on the post you never wrote. (shrug)
Totally agree lol
The thing that people tend to forget is that staking a token is in most cases the primary use case for this token. Some times it's even the only one. In this respect, burning can improve the quality of this use case.
Well yes the staking is also a feature and I guess it could increase yield. However I still think adding more utility besides that can only be better for the token's future. For example, I think CTP can be used to pay for subscription services so there is always some base value for CTP.
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Yep. with fire pay and hive pay, there's plenty of ways to pay for misc services with hive and ctp. I wrote about this a while back (https://robwillmann.com/traffic-resources-leverage-fire-pay/) and there's a lot of traffic exchanges, mailers, and ad sites where you can pay straight up for upgrades with ctp.
I totally agree with you in this respect. The more use cases and ways that you can use a token, the better.