Bitcoin Forum

Hi all ...
which do you think is better for long-term projects, burn tokens or dividends every year?
both of these choices have their own advantages. which one is more reliable to increase prices and keep the ecosystem of tokens on the market?

I want to hear your opinion about these two things.

I think burn tokens are better. This is good for long-term and short-term investors. dividends are only good for pumping, after dividends are distributed there will be a large dump that will occur in the market. this will be very painful for those who hold long term.

both are good, isn't it better to use these two methods if you really want growth. investors will be interested in projects that have progress like this. every year the amount of supply will decrease and they get profits from dividends this is something that can attract investors.

Burning would be better for investors while dividend would be better for the issuer. Dividend would add no constrain on the company while may add some on market by increasing the supply. Burning requires the company to buy back tokens which would directly lead to price rise.

NO, i think they should not burn their tokens unless it is not allocated. I mean if it was not sold to the ICO phase, that's the only way they should burn their token for a reasonable thing.

yes you are right, burn is indeed a good choice, dividends will only make the amount of supply on the market increase. it will cause a dump. developers must buy tokens on the market if they want to burn tokens and that will make prices go up.

That depends on the project itself, and you must put your analyzation on the product that created by the dev. If you are taking binance as example and it will be a good thing to burn token but you must have active income to do this.
How dev manage its platforms will decide the future of the price for the token whatever which the method that has already selected by the dev

So good which each..but it concerns the future strategy.

assumption 1 : burn tokens/coins reduce the supply will not significant increase-up a price, the final like that unless behind a team that consists of people powerful and famous.

assumption 2: dividends will be playing the speculation market and attract new users that efforts to improve the project each with a marketing strategy. after that was able to make a good set either burn token or other.

I said something that in main-play a good strategy, I prefer just like dividends

Just burn them if there is anything after the token sale,it will make the proces more easier and also will add value to the sold token.Most of the bounties says they will burn their unsold tokens so if they didn't mention anything then you need to make sure what they will do with it before investing.

Both are good for a real project that exists.

Token burning yearly? I think I have seen some other projects do this and it's beneficial for everyone whether small or large holder. And for the dividends every year, who doesn't like to have passive income? of course everyone does.

There are some tokens that offers dividends has been taken for granted by the developers. I like the idea of dividends and it's a true passive income and small returns that you can be contented with but for me, I like token burning.

Burning the token might be good for its price, but it will not last that long. Remember, the most important thing that we need to consider whenever we are joining something is distribution. What is the point of joining something if only 5~10 peoples are holding it?
ideally, the token/coin should be spread fairly to the community to increase the demand, value, and usability. It is technically impossible for any token to survive if the token holders are only around 5~10 peoples. It is because the token/coin itself has nothing other than the number, nobody is using it for their daily basis.

Burning unsold tokens after an ICO seems more like the best approach to increase the value of a token because a token with a limited supply and scarcity has the potential of being more demanded than a token that has more available supply than demand.

For me, the burning of extra tokens will eventually lead to a higher price and capitalization than each year to distribute to others, since the number of tokens will increase,and the most value is assigned only when they become not enough,and there is a good demand for them, then the price rises sharply

I like them both and I do not think one is better than the other. Both can have an effect on price but both will be useless also if the project turns out to have poor progress.

buy back token and burn it every year would be prefferable for investor rather than divide it every year, it not just raise the value of the token in circulation but also promote to people that the project really value investor.
even if this does not guarantee that the token will drop in price but at least it can made investor fell safe that the token they Hodl will raise it value in the future.

I think both methods will eventually increase the price of token if applied correctly.
As soon as I could is finished, unsold tokens should be burned.
This will lower the supply of tokens and thus will increase the demand which in turn will increase the price of token.
At later stage, dividends should be declared. This in turn will increase the demand and  thus again price.
But here to avoid dumping, Dividends should not be applicable to every investor but to specific investors like for example to those who have invested worth more than $1000/-.

i think it's better if the tokens are burned so their value can only grow up with time, with dividends there would be a dump immediately after distribution

I thnk it would be better to burn tokens. After burning the total supply will decrease so the price of tokens will grow. It is more profitable as for me I'll choose this way. If you want to reach dividents you should hold these tokens all time without any movements. 

My opinion the best way to make price of token go up and still have value is to burn tokens because when token is burned supply will decrease and will make price go up

IMO, both dividends and burn coin methods are good for the project. I think the project has to apply the method more applicable for its business model.

Both will do and many projects now are considering of quarterly buy back and burn. Some new exchanges are now offering dividends to their token holders. This strategy is beneficial for both developers and investors. As this will attract more investors and price will surely go up. This is also good for long-term and dividends is surely a great passive income.

With EVOAI, you get a bit of the best of both worlds.  They're burning unsold tokens, which increases the value.  And you regularly get paid and share of the company's profits.

With that said, I would prefer dividends, since if you solely burn tokens yearly, yes the value of your tokens will increase.  But you don't actually make any profit until you sell.

I would definitely go for dividends and those too preferably every quarter and paid in btc, eth or usd and not in the project's own token as paying dividend in its own token will only cause massive dumps after each dividend so personally i prefer eth dividends and i do not like token burns or buy backs as they produce negligible effect and investors do not feel confident in such a model.

Tokens is also the dividend of the company when it comes into operation. Income of investors are more guaranteed and so it will be more attractive

I think burn tokens will be better than dividends every year and it can make the price more and more raise after that

Certainly we got different views on this because to me dividends are much convenient than trying to lessen the circulating supply. It doesn't help when manipulators come it and its inevitable. Look what happen to ICN where they tend to burn tokens, thins never change whereas for distributing dividends, the team has something to lose so they'd have to make the project impressive for investors.

I'm just curious is to know what are the advantages and what are the major differences between these two options other than obvious things. I mean burning will lead less number of tokens to represent your project whereas dividends will obviously increase the value of your tokens. I'm not sure what are the own advantages of these two methods, you are talking about (it is better to add them up in OP itself).

I do hear corporate are following a method of "splitting" so that they will be having more number of shares but with less value. If you consider this then burning out must be a new thing after the introduction of crypto space. People are keeping weightage to "total market cap" rather than value of one unit. So, burning cannot be a right option.

none of them.
price only rises under two circumstances: 1. with pumps 2. with adoption.
the pumps are obviously what has been happening to altcoins and tokens but they are not sustainable, eventually the dump comes and prices go back down to initial value and lower than that.

the only way to increase the price is by adoption and for that the coin has to have use cases in the real world otherwise it doesn't matter how much tokens you burn or do whatever else, the coin is doomed to die.

For me I will go for the burn token projects as they are more effective on the price ,it lowers that max supply and it makes the adoption worthy but actually the coin project must still be a good one actually ,you can't expect a crappy one with burn implementation to surge on price because no one will really have interest to buy ,I guess adoption matters a lot too

The crypto market is in a way different from how it used to be, in the sense that, even if there is huge supply of tokens, the price can still rise, if the project has a good product.
So whether there is token burn or dividends on yearly basis, the magnitude of the product of such project is the most important.
If it has good product, accompanied with either token burn or dividends to holders, it will enhance its growth.

With bear market burning token might make little or no difference, I have seen different projects that have burn token yet the price is yet to increase, i think using both method may be better.

I have a question about this burning of tokens.

Who monitors the burning process? Is there independent accessors to the burning of tokens?