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RE: Steemit Crypto Academy Contest / S5W4 - Token Burn
my brother man, I am impressed with your findings.
The sole aim of burning tokens is based on the simple law of demand and supply in Economics101, which states that reducing the supply, would ultimately lead to an increase in demand which in turn leads to an increase in price.
And the act of Token burning is thus to reduce the supply of this token, there increasing the demand, which in turn is expected to increase the price. It is a way similar to what Bitcoin halving is all about to reduce its inflation rate, thus increasing its price.
Good luck my friend, do have a wonderful day.
Yes, I agree with you that burning tokens based on demand and supply law. When the supply of a token decreases, its price can increases. Thank you for the important comment.