RE: Token Burns Can Destroy Value

Yes, lowering supply can increase the token price, but it can also lower demand more than the supply was lowered, resulting in a net loss. This is why reducing yields on AMM yield farming networks is dangerous. Sure, you lowered inflation, that's great. But you also just massively reduced the reward, incentive, and demand to buy and stake the token in the first place.

Pasting this paragraph to serve as my reference to remind me of the logic behind the relationship between token burns and demand.

The ability to allocate inflation exactly where we want it based on uncrackable intelligent code reinforced by hundreds/thousands of servers around the world is the entire value proposition of crypto.

Inflation + code + servers = value

On a very real fundamental level, burning tokens is an artificial scarcity tactic derived from the legacy economy that will eventually be proven as a toxic way of attempting to bring value to the network.

Two entirely different sets of presuppositions. One is based on abundance and the other on scarcity. I am now getting what I first heard from taskmaster about the suitableness of this idea of abundance in digital space.

Crypto is all about the wide distribution of not only tokens but also power. We accomplish this by embracing an abundance mindset; not one rooted in corporate artificial scarcity.

Again, a great way to capture the value proposition of cryptocurrency in understandable statements. It's nice to see how token and power distribution are related to this idea of abundance.

The above four quoted paragraphs capture for me the entire argument of the article. I will be needing this for review since I am still in the process of digesting these new ideas.

Thanks!

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