Really Burn helps Token in positive way?

[el kaka22]

I still think that people do not understand the value of it, but there are also unlimited supply ones that burn as well which makes no sense to me at all. When there is a limited supply and you do a buyback and you burn the ones you buy, that really makes all the worth in the world.

But, when you have an unlimited supply that constantly grows and minted 10 million new coins this year and you burned a million of it, the result may not be how you want it to be. This is why I believe that it's going to be something quite important to challenge, it will take some time for sure, not going to be same at all. I hope that it gets to a point where it will not be that simple, and we are going to end up making sure that it can be improved further.

[dunfida]

I still think that people do not understand the value of it, but there are also unlimited supply ones that burn as well which makes no sense to me at all. When there is a limited supply and you do a buyback and you burn the ones you buy, that really makes all the worth in the world.

But, when you have an unlimited supply that constantly grows and minted 10 million new coins this year and you burned a million of it, the result may not be how you want it to be. This is why I believe that it's going to be something quite important to challenge, it will take some time for sure, not going to be same at all. I hope that it gets to a point where it will not be that simple, and we are going to end up making sure that it can be improved further.

Burning or not, it wont really be always that signifies that Altcoins price or its value would really be climbing up. Even if it does have that Trillion or Quadrillion supply but it do turns out that it does have actual utility or relevance then it would really be just that sufficient. It all matters with the utility because no matter how hard you do burn if the demand is depleting or the value is really going south then it would be pointless.
Unlike on having that continuous or increasing demand and having that humongous supply then it would really be just that going up despite of those huge supply numbers. It would be always varying or depending on the demand in the end of the day and this is something that you should instill into your mind. Burning does help if the demand is high and the supply is being cut but well its not actually that very common
nowadays unlike into those old years where burning is really that relevant. Now, it is really just that simply being ignored.

[JeffBrad12]

I still think that people do not understand the value of it, but there are also unlimited supply ones that burn as well which makes no sense to me at all. When there is a limited supply and you do a buyback and you burn the ones you buy, that really makes all the worth in the world.

But, when you have an unlimited supply that constantly grows and minted 10 million new coins this year and you burned a million of it, the result may not be how you want it to be. This is why I believe that it's going to be something quite important to challenge, it will take some time for sure, not going to be same at all. I hope that it gets to a point where it will not be that simple, and we are going to end up making sure that it can be improved further.

the thing with unlimited supply coin that did burning is simple, you just see their circulating supply, if over the course of the year the burning could somewhat mantains balance and even could reduce the circulating supply and there's many demand for the coin itself, then I guess the burning does helps in raising the value.
other than that, it depends on the coin itself when its got unlimited supply, ethereum is unlimited supply but the burning mechanism is there to keep the circulating supply from flooding the markets.
it would be silly if it is some random coin with unlimited supply that allows the devs themselves to mint whatever they want.

[JahriMeayer]

Investors and holders who don't know about burning mechanism, demand burning as if token their invested altcoin will skyrocket after that but the process isn't working thus way. But after announcing burning, people start investing that altcoin and so price get increased. It depends of that altcoin how they'll take manage to take advantage throughout this process. Although memecoin with huge supply, burning are different, it Doesn't impact but team create hype by themself based on burning news. Shiba buring doesn’t really Impact but after burned shiba inu from vitalik buterin, effected a lot on its price which is rarely happened

[serjent05]

I still think that people do not understand the value of it, but there are also unlimited supply ones that burn as well which makes no sense to me at all. When there is a limited supply and you do a buyback and you burn the ones you buy, that really makes all the worth in the world.

But, when you have an unlimited supply that constantly grows and minted 10 million new coins this year and you burned a million of it, the result may not be how you want it to be. This is why I believe that it's going to be something quite important to challenge, it will take some time for sure, not going to be same at all. I hope that it gets to a point where it will not be that simple, and we are going to end up making sure that it can be improved further.

Yeah, I really agree that burning tokens where there is an unlimited supply of it does not make the change.  It is like artificially slowing the inevitable..  the value of the token going to worthlessness.  Many developers make this a buzzword in order to attract investors but if we really look on what is needed, token burn is actually not needed at all, if the developer is able to create several use cases for the token, capping the token supply and implement a good marketing strategy, the value of the token will definitely increase.  Token burning is a lazy way for the developer to artificially increase the value of the token in a capped token supply project.

[tygeade]

Burning works on the premise that there is actual demand. It's probably not working for a lot of projects because they also have to create or manipulate the demand for the token. They often advertise aggressively by creating hype all over social media and offering new features that may or may not be useful at all. Methods like that are only good for short term.

Burns have two effects.

• The fastest effect is on projects that are already on the hype. I mean trending projects that are always in the hot coins of every exchange. When such a project is already make a wave, the news of coin burn will surely create more demand because it is believed to trigger limited supply
• Another effect is in the case mentioned by Op. Shiba is no longer trending and no matter how much coins the developers burn, it can only make little/no difference until the bull run approaches. The burning will give holders of the coin the conviction to keep holding and potential buyers the will to buy against the bull run.

I think second one makes more sense, because if you do burn a lot then it will have a good result, the problem is that if you do not burn a lot and just a little bit, then it's not going to matter even during the bull run. Remember, this is a token that has a ton of supply, so when you burn just a little bit of it, that doesn't change anything. I am not saying lets burn 50% of all the supply, that would be crazy and they can't do that, but burn a lot more than that to have a result as well.

It does convince people to hold, but also when there are more printed every day than what you burn, that doesn't really change much neither. So keep on burning, and burn a lot and have a daily burn if you must but I would say save it and burn big amount all at once and drop the supply amount significantly.

[rat4]

I think that burning may have both positive and negative effects depending on the case.
In short, I see aggressive burning as negative, but steady burning as positive.

As far as I know, burning brings positive impact since it reduce the number of total supply. It triggers an increase of the price/value because the circulating supply probably will be lower than usual against the demand. Moreover, it will increase faster if there are bigger demands and hype after the burning steps. So far, I don't see a negative impact of the burning steps. Can you tell me what the negative impacts are?

However, for meme coins or shit coins, it can bring no significant impact. If the coins have no demands after the hype is over, the decreasing of the total supply will mean nothing. Whatever the number of the tokens, it won't be very helpful when there is no demand anymore.

After the sharp burn, there is no guarantee that price will compensate it. What happens in this case is that market capitalization decreases. It's a very importrant metric for the visibility of a project. Obviously, I don't count in something like hype.

[Bushdark]

Investors and holders who don't know about burning mechanism, demand burning as if token their invested altcoin will skyrocket after that but the process isn't working thus way. But after announcing burning, people start investing that altcoin and so price get increased. It depends of that altcoin how they'll take manage to take advantage throughout this process. Although memecoin with huge supply, burning are different, it Doesn't impact but team create hype by themself based on burning news. Shiba buring doesn’t really Impact but after burned shiba inu from vitalik buterin, effected a lot on its price which is rarely happened

Burning of a token is very important especially when for tokens that are using the staking mechanism. Many projects are always burning there tokens so that it will have more value in the market. Apart from that, we all want to make money from the market with good profits. The burning mechanism is based on the team and how frequently the burn there token to make it have more resistance against the bear and shoot higher more.

[blockman]

Burning of a token is very important especially when for tokens that are using the staking mechanism. Many projects are always burning there tokens so that it will have more value in the market. Apart from that, we all want to make money from the market with good profits. The burning mechanism is based on the team and how frequently the burn there token to make it have more resistance against the bear and shoot higher more.

As much as it's important, there are times that it didn't do anything to some of those projects that have done it. Well, that's for those projects that have little market capitalization and liquidity. Even if they will burn their tokens for as much as they can if there is no demand, the value of their token remains the same or might even go lower. That's why doing it frequently is like a promo for them to inform everyone that they're doing it to the token so it's going to be interesting. It's helpful but not to all that does it.

[Mehedi72]

Actually buring mechanism works in different way than most of people think. As a Result, "news of token burn" create a hype which effects on people mind in positive way. If a token doesn’t have any market demand of investment, then burn can do nothing. When a project want to create bazz, then they use this strategy for people to attract. But if a token always has market demand and team burn their token then Supply will be reduced and token pump. vitalik buterin burn was biggest and most aggressivw for shiba, which made shiba pump. If anyone can do such aggressive burn (must be a potential demanded altcoin), then that will be also pumped, in my opinion

[Xampeuu]

Burning of a token is very important especially when for tokens that are using the staking mechanism. Many projects are always burning there tokens so that it will have more value in the market. Apart from that, we all want to make money from the market with good profits. The burning mechanism is based on the team and how frequently the burn there token to make it have more resistance against the bear and shoot higher more.

As much as it's important, there are times that it didn't do anything to some of those projects that have done it. Well, that's for those projects that have little market capitalization and liquidity. Even if they will burn their tokens for as much as they can if there is no demand, the value of their token remains the same or might even go lower. That's why doing it frequently is like a promo for them to inform everyone that they're doing it to the token so it's going to be interesting. It's helpful but not to all that does it.

Indeed, the news of burning tokens is interesting news, where many investors will be interested in investing in the hope that the token price will increase after burning, this is a form of promotion to attract investors so that their projects will be busy. You can imagine that if most of the tokens were in market circulation, this would certainly make activity more dense and this could attract other investors to join

[Blitzboy]

Actually buring mechanism works in different way than most of people think. As a Result, "news of token burn" create a hype which effects on people mind in positive way. If a token doesn’t have any market demand of investment, then burn can do nothing. When a project want to create bazz, then they use this strategy for people to attract. But if a token always has market demand and team burn their token then Supply will be reduced and token pump. vitalik buterin burn was biggest and most aggressivw for shiba, which made shiba pump. If anyone can do such aggressive burn (must be a potential demanded altcoin), then that will be also pumped, in my opinion

The exhilaration felt by the market after burning tokens. Amidst the fervor of excitement, a considerable number of people fail to pause and evaluate the fundamental dynamics. If there is no real market demand, a burn is like shouting into space. While many ventures try to make a splash with burning, astute investors need to see through the pretense. In addition, the Buterin maneuver was brilliant when it came to burns. However, it begs the question: Was it just the burn, or was there a confluence of timing, market emotion, and demand?

Comparatively speaking, if a new token joins the fight and tries a burn like that, you should carefully examine its underlying components. A burn-driven pump is one thing, but keeping that momentum going is a whole other animal. The important things are underneath the surface: long-term prospects, project feasibility, and underlying value. While burns may pique curiosity, substance assures longevity.

[forexandcryptoauditor]

The main intention of token burning is to reduce the supply. Ideally, when supply is reduced, demand increases automatically, and thus the price. Having said so, this will work only when demand is appropriate. For example, if a token has a demand of 2–3 million tokens and the tokens left after burn are in billions, there is no effect. Just knowing the logic, people are thinking that every burn will help increase the price, but in most cases, this is not the case.

[Justin999]

I think burn helps somehow but Its all about that token or the coin which is gonna burn. It depends on that altcoin's quality, market demand and manay thing. Burn won't help you team burn a shitcoins cause it has no demand. And how a token could pump if nobody willing to buy that token? But if it comes to potential altcoin, price will pump after announcement of burning. Cause it doesn't matter how burn mechanism work but people will crazy buy that potential altcoin which could be reason behind pump. Something influencers also promote and do burning announcement for pumping token thus way.

[oktana]

Burn is meant to reduce the total supply which should in return (maybe not instantly) influence the price of the token. Maybe the reason why you haven’t seen any results so far is because the project involved didn’t burn enough. Imagine if Bitcoin could be burnt and 10 Million Bitcoin gets burnt, the value of the remaining ones will increase because then, they are the last of their kind. But what difference does it make when you burn just 1BTC ? So the amount of tokens/coins burnt has a lot to do in the effect of the burn. Also, you can liken burning of tokens/coins as burning of actual money because these are tokens/coins you could have sold and cashed out, but then, it’ll continue being in circulation.

[JeffBrad12]

I think burn helps somehow but Its all about that token or the coin which is gonna burn. It depends on that altcoin's quality, market demand and manay thing. Burn won't help you team burn a shitcoins cause it has no demand. And how a token could pump if nobody willing to buy that token? But if it comes to potential altcoin, price will pump after announcement of burning. Cause it doesn't matter how burn mechanism work but people will crazy buy that potential altcoin which could be reason behind pump. Something influencers also promote and do burning announcement for pumping token thus way.

some shitcoin devs could be burning 99% of their total supply and it won't change a thing because its a shitcoin that doesn't have demand but its different if its ethereum that burns 50% of its total supply the value would be instantly doubled, thats the thing with burning, it requires the coin to be at least having sufficient demands first before it actually can works.
as of now, I rarely see some devs burning coins though I don't know why it was massive marketing strategy back then when many shitcoin was still a thing and get invested heavily, the devs trying to make this sense of scarcity that could make people eager to invest in their shitcoin but later on losing so many of its value.
in a nutshell, its not really a effective marketing strategy anymore.

[Marvelman]

It's all about supply and demand. Reduce the supply demand goes up along with the price.  but you gotta annihilate a chunk large enough to really shake things up. and  otherwise its just a drop in the bucket that no one notices.  So maybe we just need more bonfires going to make coin-burning actually do something.  Though at some point destroying all the coins defeats the purpose don't it? Gotta strike a balance. But at the same time, it doesn't matter how many coins you burn if there is no demand. Many shitcoins nowadays use the burn process as a marketing ploy, to attract more attention from the community. Many of them fail because at the end of the day, they are still shitcoins.

[Publictalk792]

You are asking about the burn buzz word and how it affects successful tokens. Shiba Inu is burning tokens a lot but it is important to know that token burning can effect in a different depends on the project and its goals.
Token burning means they are just want to reduce the supply or you can say the number of tokens. And one more purpose to butn the tokens is to increase the demand by shorting the supply.
But some of the tokens or coins which gain up trend in process by burning. As I mentioned above this is on the project, how much it is strong and why they are burning tokens.
You gave an example of Shiba Inu they are burning much tokens but I didn't see any significant gain in Shiba. If they are burning so I think it's price should increase but it is not increasing and I think the reason is too much supply of the tokens. Still they are burning let's see what will happen in future.

[Sophokles]

Hi,
Some How this Burn Buzz word stuck in my mind and i didn't see practical results so far in any successful token.

For example, Shiba Inu is burning tokens aggressively and is it really helping them?

May be i am noob here and happy to hear from experts!

I believe this topic will be useful for someone too!

Token burn will take some token out of circulation. This has two effects on the community one is that investors consider it positive news and rush to buy the token so that they can make profits from the price impact. Another effect is that some token will stay out of circulation forever so the token holder will get a higher value when holding the same amount of token because the amount of token decreased from circulation but its marketcap doesn't. So the price needs to be adjusted accordingly which shoots the price up.

[Bushdark]

Investors and holders who don't know about burning mechanism, demand burning as if token their invested altcoin will skyrocket after that but the process isn't working thus way. But after announcing burning, people start investing that altcoin and so price get increased. It depends of that altcoin how they'll take manage to take advantage throughout this process. Although memecoin with huge supply, burning are different, it Doesn't impact but team create hype by themself based on burning news. Shiba buring doesn’t really Impact but after burned shiba inu from vitalik buterin, effected a lot on its price which is rarely happened

The burning mechanism can help a token to become strong and withstand bear if this seems to go wrong. Some many tokens that is built on Proof-Of-Stake need to be burn or else the worse might happened. There are many crypto projects that is been built on Proof-Of -Stake and the only thing we can do to help the projects is to keep staking it apart from buying and holding. This help the liquidity of the token to be strady and keep going bull if there is no mass selling or dumping.