Typically token burning does nothing generally. I could burn my entire stake on my account and Hive won't likely move a cent.
The main purpose of burning is to reduce the supply and create scarcity.
There are ways it can do things though, if the burns are significant, systematic, and marketed.
First let me give you an example.
You go to your school bake sale, you stand in line and when it is your turn you ask for a pumpkin pie. They tell you it will be $10 and they pull a pie off the stack of 100 other pies. You pay your $10 and move on.
Let's say you instead go and they only have one pie, and you love pumpkin pie. Would you pay more than $10? What if the person behind you said they will definitely be buying that pie and will pay twice the amount to get it. You can probably see where I'm going here.
Another scenerio is here on Hive. Let's say I make a post promoting my next big thing. It gets $50-100, and I get half of that as an author. If I made that same post, but instead burned rewards, I will likely get a lot more votes as voters know I won't benefit from it (outside of more exposure) so they are likely to vote more as a result.
Another example is my own project STEMGeeks, I frequently burn 50-100% of the weekly reward pool due to multiple things I do. This takes an already super low inflation (6% compared to 20% of many tribes) and turns it to almost 0% inflation. This in theory should make the token super valuable, and the price should go through the roof as a result. This isn't the case though as most people are not interested in posting or curating Science and Technology content, but it does serve a purpose for me. It allows me to minimize the inflation and almost completely eliminate it, until we have enough users on Hive and by association STEMGeeks to justify the inflation. At that point, I would hope the demand would be much higher.
In short, burning tokens generally doesn't do anything unless it massively reduces the inflation to a point it makes the token far more attractive, but it can however be a very attractive option compared to someone else benefiting from something. For example, in STEMGeeks I burn all the rewards earned by the official accounts to further reduce inflation and prevent the token owner (me) from gobbling up all the inflation from the community.
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Just commenting here with a project I think will be doing great in various aspects (launchpad with high profile projects only, quality over quantity), ETF play....and a token burn schema. Burning up to an extreme even. They started with a tat more than 200M tokens and will continue these buybacks and burn until 2M tokens are in the market. Not sure how long this will take, maybe a decade or more. I believe they did something well in the concept. Both the launchpad and ETF fund offers long term subscriptions (token locks). The token burning gives something extra to the long term lockers, ie the idea that when the tokens get unlocked, fewer TenseT tokens are in the market which should give extra value to the token, which should entice peeps to lock their tokens for the maximum length of time. Thus far, the TenseT token value waves are caused by new project launches which require a fixed 1-year subscription.
This isn't a question, but a promotion.
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Sorry, it was not meant like that. Somehow I wanted to show the power of burning.
My bad, I thought this was a top level comment.
No worries 🙃