despite the fact I tried to read some litteracy about burning , I publicly confess my non comprehension of the thing...and as everyone seems to grab the concept, I kinda feel out of this world, but hey, I do not care being the weird one =D
That said, would someone get the challenge and try with simple words to explain to a 10 y.o mind what burning the tokens is and in what is does matter ? (if the simple words are in french, that's even better ^_^)
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I'm sure someone with a better understanding will also answer but, let me take a stab at it. To burn tokens means to literally destroy them. This will in theory increase the value of the tokens that are still around.
This is fairly what I understood but why not creating less if it is scarcity that makes the value, instead of making plenty and then burn..? That is where my mind begins to be confused...LoL Sometimes I wonder (in the WONDERful sense) how I came until this point on the platform with so few intellectual comprehension of the process 😃 I think I must have an intuitive way of understanding but I could never explain anyone about Steem, the blockchain and any cryptostuff...
Thank you anyway @ammonite 😉
You are not alone with your ponderings! :)
This is what I thought in my brain. I guess distributing the token at first as much as you can, might be purely for marketing reasons, so burning it after a while will increase the value. And perhaps simply by holding the once created but not issued coins, isn't enough to increase the value. They need to be burned so people can see that there actually is less than originally created. Then again that doesn't completely answer the: why not create less question. Because one could have always had distributed less to begin with. One token at a time so there still would be plenty to distribute and no need to create a huge amount for marketing reasons. Buuuuuuut... then again, no-one's that wizard enough to predict the exact amount of tokens needed. So better create and issue enough so they won't run out immediately.
Yes. I'm just as confused by my explanation as you are. I have no idea what I just explained. :D
I will now get more coffee so that I will wake up properly. Breakfast number two.