Eater Address in Crypto.
Hi friends, it been a while...I started this week on a low-key, I tried really hard to energize my self to work. Anyways am glad I could muster strength to put this up because am very sure so many on the platform drop by my blog to enjoy what I've prepared.
So today I thought to share my thoughts with y'all again this week. What came to mind was what I've captioned this post to be just as seen above... Eater's address. Some of us might already know what I mean while for some, it's something new. Anyways I would do justice to the topic as usual.
Every crypto project developer will always love to see their project do well. The developers would put in all their expertise to ensure that the project become successful and become the kind that investors would like to invest in. Everything they do behind the scene is geared toward one thing which I call coin value.
People would like to invest in something that has value, if the project lacks enough value at the moment, it should be able to promise investors some potential or future value. And one of the ways project developers work toward increasing and maintaining their coin value is via Eater Address.
An Eater Address is a special address created by project developers to retrieve token or coin that are considered excess in circulation. It's actually a special kind of wallet that is public and open, such that everyone can see what's happening with the wallet... such as the amount of coin or token sent into it but the fascinating thing about the wallet is that no one has access to the wallet.
It therefore mean no one can tamper with the token or coin in such specialized wallet. The eater address is also referred to as Null Address. I believe at this point you should be able to relate better now. If you're an active steemian, you must have come accross the tag burnsteem25.
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The burnsteem25 initiative was initiated to help retrieve excess steem from circulating and this is done by sending either directly to steem eater address called @null or setting the same as beneficiary at 25%. The goal is to control the value of steem and also stabilize it price.
The law of demand and supply is also applicable in the crypto market such that when we have a coin that is over saturated, that coin in general loses it value because the supply is more than the demand.
By sending the token to the eaters address,you are automatically eradicating such coin from circulation, thereby creating scarcity which fuels demand and also impact on the price in the long run.
In a nutshell, an eater or null address is an address specifically designed to remove excess token or coin from circulation into an unusable wallet that is also inaccessible. You won't be wrong to call this whole process, Coin Burning.
Proof of burn and proof of stake mechanism seem to be synonymous but then they have their striking difference. PoS has to do with locking of coin which are not permanently taken off circulation nor eradicated but PoB on the there hand, takes coin off circulation permanently such that the coin cannot be accessed again by nobody unlike POS where a user can get back a staked coin and then use for whatever he deems fit.
There you go friends.I would love to wrap it up at this juncture. I want to believe you've gotten so much from this piece. As my usual custom is, I would always encourage that you DYOR to be sure of every financial step you would want to take as I won't be liable for any form of loss encountered by you.
Feel free to share with me your thoughts in the comment section. Thanks for your time once again. Gracias!
Disclaimer: This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your own research and consult a financial advisor.
Regards
@lhorgic♥️
https://x.com/lhorgic1/status/1767897442937143528?s=20
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Regards,
@jueco