Stability in a traditional economy is a very fragile thing, since certain factors can weaken or strengthen it. But a weakening factor is the accelerated printing of money, because if the money supply increases and its demand does not, this affects the value as it will tend to depreciate (inflation) - And this is what has happened in different countries over the years, right now Venezuela is the most notable example, as the highest denomination banknote in Venezuela is 1. 000.000, but having it in your hands does not make you a millionaire, because that bill has a value of less than $0.50, and this is something even worse than what happened in the Weimar Republic (now germany) where $1 cost a million mart.
In the case of decentralized economies, the same thing happens. If there is a constant supply of coins that generates a lot of supply but little demand or few people buying, then the price of the coin drops drastically. And to avoid such a negative impact on decentralized economies, the option of burning tokens has been provided. Because when you burn a token, you are permanently removing coins from the circulating supply, this in turn causes there to be a decrease in the amount of tokens that are "available" in the market, which could lead to a healthier trend for the underlying asset, following basic supply and demand principles.
Yesterday I came across an excellent post by @arslan.leo, where he was promoting token burning to give Leo a boost, and as he mentioned in his post:
"More burning means less token supply and a higher price. A high price means we all get our high value tokens."
I also wanted to participate in that initiative, since I started in leofinance I constantly get a lot of things, knowledge, money, ways to invest, connections. But now it's time for me to do something for the leofinance ecosystem, and with the idea in mind of the token burning and what @ arslan.leo did, I have decided to create a token burning initiative but taking it to a bigger scale and also involving the whole community, so it will give it a real boost.
And what better way to involve the community than an initiative? We have witnessed that initiatives have worked well, for example AskLeo by Acesontop, Leotalk by taskmaster and toruk by onealfa. These have a lot of support from the whole community as it increases engagement.
And so, following these same guidelines to grow the community and increase the commitment of each user, I want to propose a new initiative called: "Sunday Burn ". Which is to set aside one day a week (in this case on Sundays) so that all publications that are made from the leofinance.io platform are scheduled to burn LEO tokens, this way there will be less supply of the token and a higher price, which benefits us all.
That's why I went looking for ways to burn LEO tokens, and in leopedia they explain several ways:
- LeoAd Program — generates ad revenue on our various sites (Leofinance, Hivestats, LeoDex & LeoPedia) and burns LEO from the market
- Post Promotion — users can promote their posts by hitting the “Promote” button at the bottom of their post. This burns LEO in exchange for extra exposure on their content
- 10% Tax on Non-Native Content – Hive users can post content to LeoFinance without using the LeoFinance.io interface. If they post from other interfaces on Hive into our community, then 10% of their LEO rewards (only affecting LEO, not Hive rewards) are burned from the token supply. The logic here is that a post created on LeoFinance.io is far more valuable to our economy than a post that is not created on LeoFinance.io (SEO purposes, Ad revenue, etc.)
- LeoDex Gateway Fees — our exchange interface operates a gateway that allows users to swap from HIVE into SWAP.HIVE and vice versa in order to trade. Each swap carries a 0.25% tx fee (undercutting the standard 1% fee on Hive-Engine)
- LeoShop Fees (when the shop comes back online) — 1% of all sales on the LeoShop are converted to LEO and subsequently burned from the token supply
LeoServices — the Leo Team often works with other projects on the Hive blockchain when they need access to a tool or general advice and we can provide assistance. In exchange, we often ask them to buy and burn a certain amount of LEO as payment for these services.
But, I also asked other users like edicted, ways to burn leo tokens and he mentioned to me that buying CUB burns LEO tokens, but the best and easiest way is to simply set your post rewards to @null. this way all the votes you receive will go entirely to burning LEO and you will be contributing to the leofinance ecosystem to be more sustainable and keep growing.
How is it done?
To set your posts to @null you can do it in two ways:
Go to your account settings
In the default post reward option, set it to BURN (then you would have to change this the next day).
The other way, which is much simpler is:
go to advanced options when you are in the leofinance text editor.
there you will click on rewards and configure the rewards of that publication to burn (I don't really know if later when you want to make another publication you will have to configure it again).
In conclusion, contributing to the economy of leofinance does not cost anything, and as Sunday is a day to regain strength, rest and clear, I think it is the best day of the week to make the Sunday Burn initiative, if you want to participate in this initiative you just have to set your publications on Sunday to @null or participate in some other way to the burning of chips. And this way you will be benefiting the whole community.
So what do you say, do you want to participate starting this Sunday?
Posted Using LeoFinance Beta
#FeelTheBurn
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Hahaha it will come..
Posted Using LeoFinance Beta
Posted Using LeoFinance Beta