RE: 3Speak's STEEM Burn Initiative! #NewSteem

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Dear @threespeak

Interesting initiative. I've noticed that burning tokens is a very trendy thing lately. And as much as I understand that it does slow down inflation and reduce growth of total supply - I still don't know how could it affect the price.

Supply overall is still growing and all burned tokens won't be able to catch up with inflation. On top of that burning tokens itself won't create demand. Without increased demand, it really won't help that much to burn those tokens I'm afraid.

Anyway I value what you're trying to do and I do not argue. Just wanted to share my thoughts and hopefully I can be proven wrong.

Yours
Piotr

threespeak
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Correct, demand has to be increased and driven by organic purchases of the token from businesses selling products, services, experiences or influence. Couple this will projects burning some of those profits and u have the recepie to guarantee locking more value into the chain that was distributed via inflation. This results in an incredibly atttactive token for investors and speculators

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