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I'm pleased to be here, on this note I say good day steemians. Today I want to discuss what it means when we say burn in the crypto community. Crypto currency is said to be burnt 🔥 when a particular unit quantity of a coins or token is permanently pulled out of speculation.

How is it done?

Simply by transferring the Said amount of coins or token to dead wallet, NOTE this wallet private key is unknown, that means the crypto burnt is gone forever.

Crypto burnt has been in the spotlight over few years mostly due to the incessant burning of some token like Shiba-inu, the developers of this meme coins are on a burning spree to save the coins from devaluation in a very volatile crypto market. When there's excessive cryptocurrency flowing the market the price of that token remain low as the demand doesn't exceeds the supply. At this point burning a portion of the currency act as a deflationary move. On this note the scarcity trigger price appreciation of the remaining token in circulation. Some crypto currency are Developed in such a way that their token get burned during transaction.

Example

Ripple (XRP) is coded to burn a fixed number of token as a part of every transaction, it's usually taken from gas fee paid by XRP community while transacting. Meaning that while the ensures that legitimate transaction go through burning a small portion ensures that the token upholds its value.

When developing currencies developers advertise a certain quantity of their coins for private sale and of course at a particular duration, at some extent those token might not be sold out in the expiration date of the ICO so the developers burn the Unsold coins during ICO. This too results in significant increase in the price of the currency for existing owners and the developers themselves.

This is a mechanism to reward existing token holders. Blockchain like binance implement the buy back and burn strategy wherein they repurchased some coins from the market, at market price and burn them. The price appreciation from this move act as a dividend rewards for the investors holding that token.

One of the remarkable burning event is that of Terra network in November 2021, That Terra burnt 88.7 million LUNA tokens which amounted to $4.5 billion dollars. 18 days ago steemalive community announced the birth of plans by steemit team to burn STEEM. give willing steemians the opportunity to SET 25% OF THEIR EARNINGS TO @null which will be burnt. For a certainty this movement will drive the price of STEEM.

ON THIS BASSES I SET 25% OF MY REWARDS TO @null

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I feel good part of steemit community, I will always be active promoting steemit by introducing many people to steemit so that together we can burn STEEM.

Special thanks to
@patjewell
@focusnow
@ijelady
@chichieze