Would You Participate in a Massive Campaign to Burn Steem?
Burning Steem to reduce supply is apparently a good thing for everyone on board, so would a massive campaign to burn steem (like a fundraiser but to destroy the funds rather than use them) be useful?
This question is something I've been thinking about, and since I want to try Musing I look forward to watching how it goes.
There actually is an ongoing experiment that does this and is even supported by some witnesses and people who have large stakes on the platform. The experiment is called BurnPost and I highly suggest you check it out here: https://steemit.com/@burnpost
As a small minnow, I for one will probably not participate yet on such campaigns. While I do understand that the simple act of Burning Steem if done in large quantities will make the price of Steem increase mainly due to the Law of Supply and Demand, I don't really think atm my measly $0.01 upvote or my little liquid Steem atm would matter much. I'd probably wait until I get enough support through upvotes on my daily blog posts before I consider helping the community with such campaigns.
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I would be extremely open to that because of steem were burned it would thereby reduce the available supply and help contribute to small price increases the more Steem were burned. It's actually a great idea and one in which I wish could be implemented on this platform, especially with how poorly the crypto prices have performed this year.
If you have any idea, I may have the means to implement it.
Before I give my answer, let's think about what burning STEEM does. Plainly, it reduces the overall supply which increases the value of all the unburned STEEM. It also slightly increases the value of the STEEM yet to be created, since the inflation rate remains static regardless.
Because of these effects, I would not burn STEEM except for a small amount. The reason is that just reducing the supply does not fix problems on the blockchain such as the existence of faucet rings. Scammers will continue to exploit, whales will continue to destroy the rewards pool.
The ones who should be burning STEEM are massive whales like Steemit, Inc. and others. Our small bits of STEEM do not help much, unless initiatives similar to @null are created to incentivize the destruction. If a whale bid bot was created where the profits were burnt I would consider using it.
Well, yeah, but we all know that isn't going to happen.
Putting it that way I guess it's kind of silly to think a few raised thousands or hundreds would make a difference... sigh....
No, that should happen organically, as per whitepaper creation and also with built-in mechanics like those coming with HF20.
Anything else is merely an attempt at market manipulation.
I would say that it is one of the ways to ensure a level of stability of prices and making sure that prices technically never fall down to 'zero' level.
Personally I do not support coin burn for a Proof of Stake Blockchain. We should focus on people trying to maintain their stakes in the system and increase them gradually. What we need to do is to provide people incentive to hold more Steem.
Although burning Steem or sending it to the null account might sound like doing exactly that, but it is a short term and a stop-gap arrangement. We need to create a system where people believe in holding a stake in and not a system where people might want to raise prices by burning coins
Well, the benefits for holding a stake here are pretty good, the profitability for starters, which would increase with price increases.