INTRODUCTION
I thank my God for the goodness and mercy upon my life. I will also like to thank our country rep for his wonderful work on steemit. And today is another opportunity to share with you about the burn tokens and it's benefits. I am
@sarkodieeric1
| Use your own words to determine what is token burn? and explain how it works (if possible add an illustration for it)? |
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Cryptocurrency burning is when users or holders can remove tokens from circulation, and it's normally reduces the number of coin in use. The token or coin are sometimes sent to an account or wallets address that cannot do transactions other than receiving tokens alone. The wallet addresses which is been used for the burning cryptocurrency are called burner addresses or eater addresses. And the act of burning some of the available removes tokes from supply, which reduces the number in circulation. By burning a small portion of some token, it sometimes help to maintain the value of a cryptocurrency. By doing so it involves in the effort of the community. For example, cryptocurrency like Ethereum eat some small percentage of it's token during every transactions. The sum of this over time can bring about token to be steadily increase in it values as when supply decreases. And it is also done to all other cryptocurrency to stabilize the value and helps it increase it later. However burning a particular cryptocurrency is number one way of sustaining the the value of a particular cryptocurrency. A burn tokens or coin can be lose permanent in your wallet or account without knowing or tracing the source where the tokens went.
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| List the benefits of token burning with a detailed explanation of each |
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It helps to increase in a price of a toke when some parts of the tokes is been eaten away. By burning away of some of the tokens, it helps to stabilize the toke and cause the tokens to increase later or in the near future. And by doing so, it also help to maintain the value of a particular cryptocurrency for tokens investors. It also enable stability and strengthen ones particular cryptocurrency community. And if the tokens becomes stable for a very long time it helps and brings investors to invest in that token. And as the burning of tokens increase it values, it enables the holders to get more benefits.Token burning can be very advantageous for both holders and projects alike there by reducing inflation and incentivise users who hold such tokens.
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| Why does the blockchain burn its tokens? Study the case of a blockchain that burned its tokens by identifying the results obtained |
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POB implementation can be customized. For example, Slimcoin, a virtual currency network that uses POB, allows a miner to burn coins that not only gives them the right to compete for the next block but also gives them the chance to receive blocks during a longer time period, for at least a year. Essentially, Slimcoin’s POB implementation combines three algorithms: POW, POS, and the core POB concept. The process of burning coins utilizes POW; the more coins one burns the more chances one has to mine, thus ensuring POS; and the whole ecosystem follows the POB concept.
copied this area to support my post
| The burnsteem25 company that encourages burning 25% of your publishing revenue? Do you think it will help boost the value of steem currency in the medium term |
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The burnsteem25 company that has been encouraging most steemains to set their out come of an individual tokens to 25% to
@null. And that
@null account has no private key as it is in the definitions above. And by doing this it helps to increase the tokens in the process of time. And it is beneficial to us all as it helps to boast the value of the token.
Conclusion
It is very important to burn a token as it increases the price of particular cryptocurrency. And by doing so it also help to stabilize the value of the cryptocurrency. And it is beneficial to us all. Thank you all for your time.
@sarkodieeric1, the concept of burn has greatly added value to most Blockchain that have correctly implemented their project white paper. A typical of this activity is BNB which has moved a step further from not just the quarterly burn function of it's token but with the introduction of the Auto-burn command that allows users in the ecosystem to now burn their token at will.
BNB token has shown strength over the years since the quarterly burn and auto-burn burn regime. Binance also announced that auto-burn activity will still continue even after the expiration of the quarterly burn which entails that the suggest 100,000,000 BNB token would be further burned.
Thanks for sharing your thoughts with us.
All the best in your entry
Thank you very much for your comment
You are right because these wallets have only public address to recieve tokens . As there is no private key to sign transactions so these wallets are dead.
Publicity of burn events through social media by large scale investors attact masses towards crypto .
Good luck
Greetings friend...
I know the grading is disheartening to you, but I must say I understand your point clearly. You did explain to the best of your knowledge which is okay by my standards, I hope to see more of you. Thank you and Good luck.
Greetings friend, very valuable information that you share with us today, I congratulate you for the commitment and interest you show on this subject.
That's true about token burn, it's about removing some of the tokens from the circulation with the aim that it will help to increase the market value of the token.
The addresses that are used for the burning are known as dead or null or burner address, they don't have private keys and whatever that enters there belongs to nobody again because they are now destroyed permanently.
Hey my good friend,
You have written well, from your article I know you are now very much knowledgeable than you were concerning burn token.
Also I want to advise you to add much more words and quality in your post because the professors are looking for deep explainations, so if you wish to score higher try make deeper and better research on the topic before submitting your entry. You are a good author and I believe that you can write deeper to score higher in the contest.
Thank you very much for sharing, please you can check my own entry here
wishing you success
Hello friend,
Token Burning us a very important factor behind the growth and maintenance of an ecosystem. Sending the tokens to the dead wallets, reducing the supply and improving the demand is very much beneficial.
Yes, this wallet is actually the dead wallet if the Steem Blockchain that can be used for the burning if Steem tokens. Users can add beneficiary, send directly to this address for burning purposes.
It has no private key because it in unaccessible for anyone. Well written post, good luck for the contest ahead.
Another interesting article from my friend this week. You have tried alot by pointing out some interesting matters surrounding burning of tokens. Like the part where you talked about the positive results of token happening later in the future instead of in real time.
I agree with that because in some cases, other factors may affect the instant change in price and value of an asset. Nevertheless, the positive impact will still be observed with time.
Thanks for sharing friend, and goodluck in this contest.
I will appreciate if you equally engage on Mine
Wish you well in the contest. Steem on!
😀🇬🇭🎉🎉