There’s many news in the cryptocurrency world about the developers burning millions and billions of tokens. Token burning reduces the supply, making tokens of the cryptocurrency scarcer. That scarcity can lead to an increase in price and benefit investors. The idea behind token burning dates back to traditional stock exchange days. It’s very similar to and inspired by stock buybacks. A stock buyback is when the company that issued the stock buys shares back at the market price and reabsorbs them, reducing the number of total shares in the market. While buybacks and token burning aren’t an exact match, they’re similar concepts that can serve the same goals.
InPoker will buyback and burn half of received profit in INP tokens in order to decrease the total supply and increase demand as the platform becomes more popular. Shortage of tokens in circulation will drive the demand. By keeping the INP token and staking it, users can continue to be rewarded. This will attract more users in the platform while providing a sustainable blockchain economy for the INP token.
In a modern world, many companies follow this example and InPoker team uses this tactic to provide value to the project and INP holders. Burning can help the cryptocurrency rise in value. Many tokens have positive price movements after tokens are burned. If a cryptocurrency has a high inflation rate, burning tokens can curb the increase. It’s a way for participants to add new blocks of transactions to a blockchain with proof-of-burn cryptos.
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