Question about burning tokens

So I have a question about burning tokens, specifically tokens that aren’t already ‘circulating’.

In this example, a project has 400m tokens – 200m are currently circulating, the other 200m are owned by developers for staking rewards and card cashback. These dev tokens are locked and vested or are in smart contracts.

If the devs decide to burn any of these tokens, will this have any direct impact on the price of the token as these tokens aren’t actually circulating yet?

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4 thoughts on “Question about burning tokens”

  1. >If the devs decide to burn any of these tokens, will this have anydirect impact on the price of the token as these tokens aren’t actuallycirculating yet?

    No it will not affect price **directly**, but it **could** affect it indirectly as it makes the token more scarce. However, that only matters if people want the token.

    You can pretty much think of burning or scarcity in general as an accelerator to token price increase, but it’s never the source.

    Nowadays, token burns are often used as a marketing tool with little real market impact. E.g. project burning most of their supply at launch is the same as projects launching with a lower supply.

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  2. Burning coins for the most part stopped being effective about a year or so ago… Usually now just the shit coins do it

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  3. Burning tokens doesn’t directly affect price but rather the impression it creates causes some sort of buy pressure would in turn send price up, always remember that, the lesser tokens you have in circulation, the higher it is for price of the token to go up.
    CryptoXpress plans to have a burn in the coming months and I’m looking forward to it.

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