Burning from Total Supply

Why token burning so much important?

A particularly uncontrollable element of cryptocurrency is inflation. The crypto market’s inflation rates can quickly soar, which can soon become an issue that makes the market less stable. So, through coin burning, the inflation rates within the industry can be curbed.

On the other hand, burning cryptocurrency can help to increase its value. Again, this relates to supply and demand. If there are fewer coins in circulation and the demand exceeds the supply that can be provided, the price will most likely shoot up. Hence why developers often burn huge amounts of their native tokens.

Many projects resort to burning part of the issued coins. In some cryptocurrencies, burning was originally provided for by the network algorithm, in others, the decision was made as changes were made to the protocol.

In addition, the implementation of the burning proves that the developers are serious about the development of their project and intend to work on increasing the value of the cryptocurrency.

Examples of Cryptocurrency Burning

When burning tokens, crypto projects send the tokens that they want to be removed from circulation to a frozen account called a “burn address.” This is a special type of cryptocurrency account in that it receives tokens but can’t let them out after they are in. The burn address doesn’t have the private key for accessing what it holds.

Many projects resort to burning part of the issued coins. In some cryptocurrencies, burning was originally provided for by the network algorithm, in others, the decision was made as changes were made to the protocol.

Binance Coin (BNB) developers indicated their intention to burn coins back in the White Paper, planning to reduce the initial circulation of coins by half — from 200 million to 100 million.

AVAX burning all their fees and even created site about it: https://burnedavax.com/ , 1.6M avax burned so far.

The development concept of Ripple also involves the gradual development of coins, which, according to the creators, avoids inflation. To do this, the developers have created a burning mechanism in which 0.00001 XRP is destroyed with each transaction.

I just collected news related to the subject and want to show why burning is important to people. I hope thing move forword about burning from our huge lina supply (Total Supply 10,000,000,000).

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thanks for the article.

how do you perceive linear finance best address this concept? please provide specific examples of how you would apply this concept to linear finance

excited to hear what you’re thinking!

IMO, we should to do two kind burning program at the same time.

1- “Lina Burn Schedule” (quartly) and burning totally %10 of lina in 1 year.
2- Also " Real-Time‌ ‌Burning‌ ‌Mechanism‌" and we can burn %3 of fees.

We can burned by sending them to a wallet address that can only receive tokens, but not send any. This removes them from circulation, or “burns” them.

Simple and good plan to me.

Hello,

I have an idea to use the “burned” tokens for a weak point in the linear eco system. We have already discussions about the unstable peg of the lUSD. And therefore we could use the burned tokens to stablize the lUSD peg via a “peg protection pool”.

Therefore we implement a smart contract which is able to receive “burned tokens”. With these tokens it can do a reduced set of transactions which are needed to balance the peg or increase/reduce the liquidity of the lUSD/BUSD pool on pancakeswap. The contract should not be able to withdraw any of the tokens to any other address than the needed pancake swap resources. And therfore the tokens are “burned” / locked / gone out of supply but they also have value for the protocol stability.

It will not have the exact same effect like the classic burn, but it should be a healthy mechanism for the protocol and some sort of deflation should be achieved.

What are your thoughts on this?
Best regards!

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hey super fly

where would the 10% of lina come from? would you want to reduce the rewards? i guess i don’t understand where that lina comes from …

Sorry I missunderstood things about reducing supply then. I thought reducing supply is possible, not with rewards I mean.

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