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Discussion Thread: Pitch Your Idea About Burning Tokens by cryptoctopus

View this thread on: hive.blogpeakd.comecency.com
· @cryptoctopus · (edited)
$2.70
Discussion Thread: Pitch Your Idea About Burning Tokens
![mohamed-nohassi-UKX_DwNKXSA-unsplash.jpg](https://images.hive.blog/DQmcXhNPofjU6AwCFtBaPEpwacDYHSAUDvRvt4D2pXPKAiN/mohamed-nohassi-UKX_DwNKXSA-unsplash.jpg)

Photo by Mohamed Nohassi on Unsplash

# HIVE and Incentives

One interesting feature of the Hive Blockchain is that every day, new HIVE tokens are created to pay witnesses, proposals, curators and authors. This is great since it's the engine that fuels everything that is happening on the network. In a perfect world, all of the activities outlined above would increase the value of the blockchain overtime and grow the value of the token.

But that hasn't always been the case on the Steem blockchain. Hopefully, now that the chain is free from Steemit Inc, we can do something better together and learn from the mistakes from the past.

Now if the community doesn't grow and if there is not enough incentives for people to invest in HIVE, inflation will devalue the HIVE token and we'll all be fighting for a smaller and smaller reward pool.

Interesting enough, when the value of the token goes up, a lot more attention is brought to HIVE. More articles are written, more people learn about it, more people invest and more people create an account. 

So we can see a direct correlation between the value of the token and how much attention it gets.

# Let's Burn It All
One interesting way to increase the value of the HIVE token is to have some of the token being "burned". That means having people willingly destroy their tokens in exchange for something.  All things being equal, the less token we have in circulation, the more value each token have. 


## Let's Start a Conversation About This in the Comment Section

I'm not a huge whale with my upvote, but 21K HP is what I'm going to use to upvote the best comments. (~$1.00 value)

I have a bunch of ideas about how we could create incentives for people to burn their tokens but I'm sure that I haven't scratched the surface of what we could do to create deflationary pressure in the HIVE economy.


### Let's talk!

#posh: https://twitter.com/cryptoctopus777/status/1255240907693195266
👍  , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , and 189 others
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vote details (253)
@aussieninja ·
$0.25
What about a game when each round requires players to put Hive or HBD into a pot and then the winner gets 50% of the earnings, the devs get 30% and 20% of the pot is burned.  I imagine that if the game is fun enough then people would focus on is potentially won, not what is burned... So if 10 players put in 5 Hive, then everyone focuses on the 25 Hive that the winner gets (because it's 5 times more than what they put in the pot themselves).
👍  
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@cryptoctopus ·
That is actually a really cool idea!
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@evolved08gsr ·
It's a cool idea for devs. No gambler in their right mind would accept a 50% rake. Very idealistic, let's get realistic though.

Don't get me wrong, I appreciate the thought/effort! Let's keep it to reality though 🙂

The only way you "trick" someone into this type of gambling is if there's a **massive** reward at the end of the tunnel
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@bryan-imhoff ·
At this stage in the game I'd much rather see tokens freely given to people rather than burning them.

The entire point of the inflation is to distribute the token as broadly as possible, as it's the network effect that creates the value, not scarcity in itself. In five years, no one will care if there's 400 million Hive or 40 million Hive if we're at 10,000 daily active users. It'll be worthless either way.

Consider it our marketing spend. If we were a coroporation we'd be in our startup phase. There's no way we should be fretting about cutting our marketing budget in favor of stock buybacks.

Sub 10% inflation and falling is easily overcome by new investment. If someone doesn't believe the Hive economy will grow by more than 10% per year, they're not going to invest anyway.

The only burn that's good right now is burning 3 Hive for each account creation. Most applications and front ends don't have enough discounted account creation tokens to handle a large influx of new users. If we want to burn 300,000 Hive let's at least do it setting up 100,000 new accounts. Or quite possibly 37,500 new accounts with a 5 Hive welcome gift on each.
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@evolved08gsr ·
Let's stop with the burn debate and just let a new "free market" without Stink .. were.. SteemitInc.. commence!

I think we will have a much more "natural" environment with that stake gone and things will work themselves out as originally intended.
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@hedge-x ·
$0.19
Ad burns no doubt.
👍  
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@cryptoctopus ·
what if there was a "declined payout" attached to it? That way, you don't burn to get upvotes but purely for exposure in the trending?

Or are you talking about native ads?
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@hedge-x ·
Ads would need to burn HIVE token.
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@hivebuzz ·
Congratulations @cryptoctopus! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

<table><tr><td><img src="https://images.hive.blog/60x70/http://hivebuzz.me/@cryptoctopus/replies.png?202004282118"></td><td>You got more than 4000 replies. Your next target is to reach 4250 replies.</td></tr>
</table>

<sub>_You can view [your badges on your board](https://hivebuzz.me/@cryptoctopus) and compare to others on the [Ranking](https://hivebuzz.me/ranking)_</sub>
<sub>_If you no longer want to receive notifications, reply to this comment with the word_ `STOP`</sub>



**Do not miss the last post from @hivebuzz:**
<table><tr><td><a href="https://peakd.com/hivebuzz/@hivebuzz/hivebuzz-hive-gamification-experience"><img src="https://images.hive.blog/64x128/https://i.imgur.com/3borgex.png"></a></td><td><a href="https://peakd.com/hivebuzz/@hivebuzz/hivebuzz-hive-gamification-experience">HiveBuzz - Hive Gamification Experience</a></td></tr></table>

###### [Vote for us as a witness](https://hivesigner.com/sign/account-witness-vote?witness=steemitboard&approve=1) to get one more badge and upvotes from us with more power!
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@slider2990 ·
$0.27
1) Banner Ads are working on hive-engine tokens such as LeoFinance where LeoFinance takes the ad revenue then buys Leo Token on open market and finally sends the bought token to @null.

2) To get on trending you must use peakd promoted feature or sending hive to @null if you feel your content is most worthy you will bid a lot of hive to get to the top of the list.
👍  , , ,
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@eirik ·
So LEO is kind of deflationary? Very cool.
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