Burnsteem25 Contest- The Evaluation of my Support by @temitopef

Good day Steemians, welcome to my blog. Today I'm joining a contest organized by @fredquantum with the topic: "Burnsteem25 Contest: The Evaluation of my Support." The support is about the initiative of burnsteem25, what I understand by burning in the crypto ecosystem, and my support for the burnsteem25 initiative. Go with me as I dive into the contest's questions.

Burning in the crypto ecosystem can simply be put as a process in which a certain amount of token is being taken out of circulation so that there would be an increase in the value of the same existing token that is already in the circulation. This can be done by sending or transferring a certain amount of tokens to an account that can only receive them.

We all know that we have private keys that enables us to have total control over our cryptocurrency assets, to access received tokens and send tokens to another person with our wallets but for this account used for burning, the account was set only to receive and in such a way that no one has control over it. The account has no private key, It cannot be accessed, any token sent into such account are gone forever.

This type of burning is not happening only in cryptocurrency but also in other finance sectors too, and this is when public companies use their money to buy back stocks to reduce the numbers of stocks in circulation and for the one in circulation to have more value.

Token burning is an intentional process whereby tokens are eliminated from circulation so that they can not be used anymore, and it is done mostly to stabilize and increase the value of the token. Remember of economic principle which says " Reducing quantity of goods will make the goods much more valuable", once you reduced the number of goods, there would be a scarcity of them and that will help the ones available to be more valuable. This is also the same for cryptocurrency, once the excess is eliminated it would increase the price of such token or coin.

Furthermore, the burning of the tokens is done using the address that is known as an eater address. There are some cryptocurrency that uses PoB, Proof-of-Burn (PoB) is one of the blockchain consensus algorithms whose principle is to allow miners to burn cryptocurrency tokens, to earn native tokens or buy mining space on a network. PoB is similar to Proof-of-Work consensus algorithm just that it consumes less energy when compared to PoW.

Eater address in the crypto ecosystem can be defined as a verifiable wallet address designed only to receive tokens and once it received the tokens, they would be vanished forever because it can not be accessed or controlled by anyone.

The examples of eater addresses I would be discussing with their projects are:

@null: @null is a verifiable wallet address that has been specifically generated to allow burning operation on the Steem blockchain. It is designed that it can only receive the tokens, and once the token is sent or transferred to null, they are automatically eliminated from the circulation because it can not be accessed or used again, in other words they are gone forever.

One of the projects peculiar with null is Steem blockchain like I said before, once any amount of Steem token is sent to @null, such token is taken into the null account that cannot be accessed by anyone. Like we always do it as writers on Steemit, once we set 25% of our earning to null, when the articles pay out, the 25% will be gone into the eater address, @null, which makes it removed from circulation immediately.

Terra Luna Eater Address: The second eater address I would be talking about is the Terra Luna eater address, after the infamous attack on the Terra blockchain, Luna holders and the community decided to burn some tokens because they thought it would help to increase the tokens value, though the Terraform labs CEO, Do Kwon was initially against the plan because he believed burning might not have any impact on the token because of how terrific the fall was, he later sent an eater address for people that insisted on burning.

The address sent is: terra1sk06e3dyexuq4shw77y3dsv480xv42mq73anxu and Terra Luna holders were able to send 273.35 million Terra Luna tokens which are equivalent to $52,000 to this address for burning. Though the burning was small when compared to Luna's supply of over 6.5trillion yet the burning helped to boost the coin as the price increased to over 19% in 24 hours after burning.

Yes I am aware of the burnsteem25 initiative on Steemit, the main reason for this initiative is to increase the value of Steem, it was said that like every other crypto coin that if we can burn part of our earnings, there might be increase to the value of Steem, the conclusion was that all willing users should set aside 25% of their earnings into a burner/eater address which is @null for burning, as that would reduce excess Steem from circulation which would help the remaining Steem value to appreciate.

Furthermore, I believe the initiative helped in boosting the economy of Steem a little bit because it was able to maintain some stability unlike before even with this market volatility, Steem did fall because the cryptocurrency is generally bearish for some time now but the fall was not that bad. I think if we can continue with this initiative, there would be a great change in the economy of Steem.

Looking at my 10 expired articles, I have used 5 out of these posts to support burnsteem25, take a look at the screenshots of my account from Steemworld below, the red arrow indicates the post I supported with burnsteem25.

We were asked to consider 5 active articles, and looking through them, I was able to support burnsteem25 with all of the 5 articles. Here is the proof in the screenshots below, the arrow indicates my support for burnsteem25.